Crude oil prices edged lower on Friday, extending losses to a fourth straight session, as traders feared a likely drop in energy demand and excess supply in the market.
The possibility of the U.S. relaxing sanctions on Iran also weighed on crude oil prices.
A report from Baker Hughes that said oil rig count in the U.S. dropped for a fourth straight week, limited oil’s slide.
Despite improving signs of some positive developments on the U.S.-China trade front following the two nations making conciliatory gestures ahead of the next round of crucial talks, a notable surge in demand for energy looks unlikely.
West Texas Intermediate Crude oil futures for October ended down $0.24, or 0.4%, at $54.85 a barrel.
On Thursday, WTI crude oil futures for October ended down $0.66, or about 1.2%, at $55.09 a barrel.
For the week, WTI crude oil futures shed nearly 3%.
Baker Hughes said today that the number of active U.S. rigs drilling for oil declined by five to 733 this week.
In its latest monthly report, OPEC said global oil market would be in surplus next year. Oil demand will drop by about 60,000 barrels per day next year.
The recent meeting of OPEC members in Abu Dhabi ended without the group deciding on any deeper output cut, although OPEC and its allies urged members to implement promised cuts.
On the trade front, U.S. President Donald Trump said he would think about an interim deal with China but would rather prefer a full agreement between the two countries.
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