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Crude drops as Mideast supply fears continue to unwind

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Investing.com -

Investing.com - Crude futures dropped on Friday as investors continued to unwind positions that priced in conflict-related supply disruptions in Libya and Iraq that never materialized.

In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in August traded at $101.00 a barrel during U.S. trading, down 1.88%. New York-traded oil futures hit a session low of $100.62 a barrel and a high of $102.92 a barrel.

The August contract settled up 0.63% at $102.93 a barrel on Thursday.

Nymex oil futures were likely to find support at $99.71 a barrel, the low from May 9, and resistance at $104.20 a barrel, Tuesday's high.

Fears that military conflicts in the Middle East will disrupt supplies continued to abate on Friday, which sent oil prices falling.

Libya recently struck a deal with rebels occupying oil ports under terms that would have insurgents give up control over terminals that have been closed for a year.

The deal should add 500,000 barrels per day of crude back into the global energy market, and reports that shipments are on the rise already bruised oil prices on Friday.

Elsewhere, ongoing expectations for the Iraqi insurgency to remain to the north of the country's oilfields also allowed prices to drop.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for August delivery were down 1.82% and trading at US$106.701 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$5.70 a barrel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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