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Oil rises but declines for the week as supply concerns ease

Reuters  |  NEW YORK 

By Stephanie Kelly

NEW YORK (Reuters) - prices rose about 1 percent on Friday as strike actions in and hit supplies, but futures were set for a second straight week of decline after Libyan ports reopened and on the view that might still export some crude despite U.S. sanctions.

Brent crude rose 88 cents to settle at $75.33 a barrel, a 1.18 percent gain. The global benchmark fell about 2.7 percent for the week.

Intermediate (WTI) crude futures rose 68 cents to settle at $71.01 a barrel, but lost about 3.9 percent this week.

The market pared gains late in the session on a report that the is actively considering tapping in to the country's Strategic Petroleum Reserve, which would add supply to the market. The holds a reserve of about 660 million barrels, enough for about three or four months of supply.

"People have been talking about that as a rumour," said Robert Yawger, director of futures at Mizuho in New York. "This is nothing different than anything that's been said in the last weeks here."

Hundreds of workers on Norwegian offshore and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, closing Knarr field, which produces 23,900 barrels of equivalent per day.

In Iraq, about 100 protesters demanding jobs and better services closed access to Umm Qasr commodities port near the southern city of on Friday, port employees said.

"Persistently declining from and simmering strike actions in and are prompting bullish sentiment," said Abhishek Kumar, analyst at Interfax in

Prices weakened earlier in the week after OPEC member reopened major eastern and U.S. said would consider granting waivers to some of Iran's crude buyers.

Fears that a U.S.-trade dispute could hit global economic growth have also kept buyers on the back foot.

and other leading may boost further if supply shortages hit the market, Russian said. In June, the and other key producers including responded to market tightness by easing a supply-cut agreement.

China's fell for a second month in a row in June to their lowest level since December, as shrinking margins and led some independent refiners to scale back purchases.

The U.S. remained steady at 863 this week, General Electric Co's firm said. The rate of growth has slowed over the past month or so with a decline in crude prices from late May through late June.

Hedge funds and other money managers raised their combined futures and options position in New York and by 847 contracts to 457,718 during the week ended July 10, the highest since April 24, the (CFTC) said on Friday.

(Reporting by in New York, Aaron Sheldrick in Tokyo and Dmitry Zhdannikov in London; Editing by and Matthew Lewis)

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

First Published: Sat, July 14 2018. 02:15 IST