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Crude prices move lower amid profit-taking

Published 09/30/2016, 07:25 AM
Updated 09/30/2016, 07:25 AM
Crude oil slides lower as traders lock in profits from recent rally

Investing.com - U.S. oil futures moved lower on Friday, as traders locked in profits from the commodity’ rally to a one-month high on Thursday, boosted by news of a production freeze deal between major oil producers.

U.S. crude futures for November delivery were down 0.23% at $47.73 a barrel, after rising to a one-month peak of $48.32 a barrel on Thursday.

On the ICE Futures Exchange in London, the November Brent contract lost 0.38% to $49.61 a barrel, off the three-week high of 49.83 hit overnight.

The Organization of the Petroleum Exporting Countries said late Wednesday that it had agreed to reduce output to a range of 32.5-33.0 million barrels per day, a reduction of 0.7-2.2% from OPEC estimates of its current output at 33.24 million bpd.

It was the first such deal since 2008.

However, enthusiasm over the deal slightly began to fade as market players turned their attention to a November meeting, where more details should be hammered out.

Oil prices were also hit by a stronger U.S. dollar on Friday, as investors awaited the release of U.S. personal spending and consumer sentiment data, as well as report on manufacturing activity in the Chicago area for further indications on the strength of the economy.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.

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