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Oil Prices Fall Ahead of Weekly Rig Data

Published 07/09/2018, 16:25
Updated 07/09/2018, 16:38
© Reuters.  Oil prices were lower on Friday.
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Investing.com - Oil prices fell on Friday, as U.S. crude inventories fell to their lowest levels since 2015 and investors looked ahead to weekly rig numbers.

West Texas crude oil futures slumped 0.60% to $67.36 a barrel as of 11:24 AM ET (15:24 GMT). Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., decreased 0.41% to $76.19.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 4.302 million barrels in the week ended Aug. 31. Market analysts had expected a crude-stock decline of 1.294 million barrels.

Meanwhile, the Organization of the Petroleum Exporting Countries will meet next week to discuss proposal to share oil-output increases, months after the group decided to ease supply curbs. The committee will meet on Tuesday to consider distributing the agreed output increase of 1 million barrels per day, Reuters reported.

The talks could resolve tensions within the group. Iran voted against the June decision, but faces increased pressure amid upcoming U.S. sanctions. The financial sanctions against Iran will target the petroleum sector in November, when a global drop of crude supply is expected.

Meanwhile, trade tensions and emerging market weakness remained in the back of investors minds. Traders are waiting for news of U.S. tariffs on another $200 billion worth of Chinese goods that could go into effect as soon as Friday. China said it would retaliate if new tariffs are imposed.

Market players will also focus Friday on weekly rig count data for further signals on U.S. output levels.

Last week’s data showed that the U.S. rig count, an early indicator of future output, rose by 2 to 862 last week, according to oilfield services firm Baker Hughes.

In other energy trading, Gasoline RBOB Futures fell 0.66% at $1.9461 a gallon, while heating oil inched down 0.45% to $2.1992 a gallon. Natural gas futures decreased 0.14% to $2.768 per million British thermal units.

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