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Oil prices dip, snapping longest rally since 2012

Published 03/07/2017, 11:34
Updated 03/07/2017, 11:41
© Reuters.  Oil prices edge lower snapping longest rally since 2012
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Investing.com - Oil prices dipped on Monday, after posting gains in the previous seven sessions in what was the longest unbroken rally in more than five years.

The U.S. West Texas Intermediate crude August contract was at $45.05 a barrel by 06.34 AM ET (10.34 GMT), down 0.07%. It touched its highest since June 14 at $46.44 earlier.

Brent oil for September delivery on the ICE Futures Exchange in London was last at $48.69, off eight cents or 0.16% after hitting a three-week high of $49.15 earlier.

Oil edged lower as investors took profits after what was the longest unbroken rally since February 2012.

Prices had been boosted after data last week indicated that U.S. oil output is moderating.

Energy services firm Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by two, the first decline in six months.

Despite the drop in drilling the total rig count was still more than double the 341 rigs in the same week a year ago, the firm said.

The report came after figures from the U.S. Energy Information Administration showing that output fell by 24,000 barrels per day in April, the first drop this year.

But oil markets remain oversupplied despite output cuts brokered by the Organization of the Petroleum Exporting Countries.

In May, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.

The cartel will not rush into making a further cut in oil output or end some countries' exemptions to output limits, OPEC delegates said last week, although a meeting in Russia next month is likely to consider further steps to support the market.

Elsewhere on Nymex, gasoline futures fell 0.74% to $1.506 a gallon, while August heating oil edged down to $1.481 a gallon.

Natural gas futures were at $2.979 per million British thermal units.

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