Oil prices fell broadly on Friday, heading for a large weekly percentage decline, as a strong dollar and ample supplies outweighed concerns about a drop in Libyan crude exports.
U.S. crude oil futures sank to the lowest since late June, while Brent was on track for one of its largest daily percentage losses in more than one month. Brent’s steeper losses narrowed its premium over WTI by around 80 cents from the previous session’s close, after it hit a seven-month high in the previous session.
An industry report showing the U.S. manufacturing sector expanded at its fastest pace in 2-1/2 years in October strengthened the dollar, which weighed on oil prices. Dollar strength makes commodities priced in the greenback more expensive for overseas investors.
Brent crude plunged nearly 2.5 percent to trade under $ 107 a barrel. Brent had fallen $ 1.02 in the previous session, when traders booked profits, and was up less than $ 1 for the week so far.
U.S. oil lost $ 1.77 to end U.S. trading at $ 94.81 per barrel, its fourth consecutive week of losses and its longest losing streak since June 2012.
Concerns over supply from Libya wavered as North Sea oil fields returned from maintenance, analysts said.
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Oil prices fell broadly on Friday, heading for a large weekly percentage decline, as a strong dollar and ample supplies outweighed concerns about Libya.