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Oil rises but set for second weekly fall 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 futures rose 82 cents to $75.27 a barrel, a 1.1 percent gain, by 1:14 p.m. EDT (1714 GMT). It was on track for a weekly fall of around 2.4 percent.

U.S. Intermediate (WTI) crude futures for August delivery rose 71 cents to $71.04 a barrel, but was on course for a weekly decline of about 3.7 percent.

The market, however, found support on Friday from supply concerns.

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 from Iraq's leaders 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 Minister said. In June, the Organization of the Petroleum Exporting Countries 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 since December, as shrinking margins and led some independent refiners to scale back purchases.

The U.S. remained steady at 863 in the week to July 13, General Electric Co's firm said on Friday. The rate of growth has slowed over the past month or so with a decline in crude prices from late May through late June.

(Reporting by Stephanie Kelly, and Dmitry Zhdannikov; Editing by Marguerita Choy, and Jonathan Oatis)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 22:57 IST