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Oil edges lower, set for big weekly decine

Reuters  |  TOKYO 

(Reuters) - prices edged lower on Friday and were set for a second weekly fall, as the market shrugged off a warning that spare capacity may be stretched as and increase production.

Brent crude eased 20 cents, or 0.3 percent, to $74.25 by 0059 GMT. On Thursday it gained $1.05 a barrel, rebounding from a session low of $72.67. It is heading for a weekly fall of nearly 4 percent.

U.S. crude dipped 6 cents, or 0.1 percent, to $70.27, after a five cent decline in the previous session. It is heading for a weekly decline of nearly 5 percent.

It has been a wild week for prices with both the main benchmarks suffering heavy losses on Wednesday as traders focused on the return of Libyan to the market amid concerns about a China-U.S. trade war.

However, a warning on spare capacity by the (IEA) pushed Brent higher on Thursday, helping it recoup some losses.

The IEA cautioned that the world's "might be stretched to the limit" due to production losses in several different countries.

"Rising production from countries and Russia, welcome though it is, comes at the expense of the world's spare capacity cushion, which might be stretched to the limit," the Paris-based IEA said in its monthly report.

"This vulnerability currently underpins and seems likely to continue doing so," the agency said.

(Reporting by Aaron Sheldrick; editing by Richard Pullin)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 06:55 IST
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