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Oil falls for second week as supply concerns ease

Reuters  |  LONDON 

By Dmitry Zhdannikov

LONDON (Reuters) - prices were set for a second straight week of decline on Friday after Libyan ports reopened and on the view that might still export some crude despite U.S. sanctions.

Brent crude was down 10 cents at $74.35 per barrel by 1308 GMT, having fallen earlier by 1.3 percent. It was heading for a weekly fall of around 3 percent.

U.S. benchmark Intermediate crude was up 10 cents at $70.43, and was on course for a weekly decline of around 4 percent.

approached $80 in late June and early July due to Libyan and Venezuelan supply disruptions and fears the would press all buyers of Iranian to cut imports to zero from November.

But prices weakened in recent days as OPEC member reopened its ports in the east and U.S. said would consider granting waivers to some of Iran's crude buyers.

Prices also slid amid broader market fears that a U.S.-trade dispute could hit global economic growth.

"While the could not escape the mounting trade tensions and souring sentiment in financial markets, the sell-off was more about signs of rising supplies," said.

"If was blocked from the market, we believe would rise towards $90 per barrel, which would cause significant fuel inflation, weigh on consumer and business sentiment and eventually hurt the economy," he added.

The International Energy Agency (IEA) warned on Thursday that the world was short of spare supply capacity and hence any new disruption could further elevate

"Underpinning this morning's bout of malaise are from The world's biggest importer of crude curbed its purchases last month to a 2018 low," said from PVM brokerage.

(Reporting by and Dmitry Zhdannikov; Editing by and Louise Heavens)

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

First Published: Fri, July 13 2018. 19:02 IST