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Crude Oil Prices Decline Amid Sustained U.S. Output Worries

Published 12/22/2017, 08:13 AM
© Reuters.  Crude moves lower as rising U.S. production still weighs
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Investing.com - Crude oil prices moved lower on Friday, still weighed by concerns over rising U.S. output and as the Forties pipeline in the North Sea was set to re-open in January.

Trading volumes were thin on Friday as investors closed positions ahead of the upcoming Christmas and New Year holidays.

The U.S. West Texas Intermediate crude February contract was down 42 cents or about 0.72% at $57.95 a barrel by 08:10 a.m. ET (12:10 GMT).

Elsewhere, Brent oil for February delivery on the ICE Futures Exchange in London was down 40 cents or about 0.62% at $64.50 a barrel.

In addition to the ongoing outlook for rising supplies in the U.S., the expected return of the 450,000 barrels per day Forties pipeline system in the North Sea in January dampened demand for the commodity.

The pipeline was shut earlier this month due to a crack but its operator said on Thursday that it expected to complete repairs around Christmas and to gradually restart the system in early January.

Fears that rising U.S. output could dampen OPEC’s efforts to rid the market of excess supplies have been weighing on the commodity in recent months.

The producer group, along with some non-OPEC members led by Russia, agreed last week to extend current oil output cuts for a further nine months until the end of 2018.

The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.

Elsewhere, gasoline futures were down 0.26% at $1.741 a gallon, while natural gas futures gained 1.12% to $2.627 per million British thermal units.

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