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UPDATE 10-Oil prices slip over 1% after Norway oil worker strike ends

Published 10/10/2020, 01:03 AM
Updated 10/10/2020, 03:40 AM
© Reuters.
LCO
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CL
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* Both benchmarks gain about 9% this week
* Norway oil worker strike ends
* Hurricane halts 92% of U.S. Gulf of Mexico oil output
* U.S. Senate Republicans cast doubt on stimulus deal
* JP Morgan- OPEC could reverse planned easing of oil cuts
in 2021

(Adds latest prices, fresh quote)
By Scott DiSavino
NEW YORK, Oct 9 (Reuters) - Oil prices slipped more than 1%
on Friday after an oil worker strike in Norway ended, which
should boost crude output even as Hurricane Delta forced U.S.
energy firms to cut production.
Brent futures LCOc1 fell 49 cents, or 1.1%, to settle at
$42.85 a barrel, while U.S. West Texas Intermediate (WTI) crude
CLc1 fell 59 cents, or 1.4%, to settle at $40.60.
Despite Friday's price slide, both benchmarks gained about
9% this week, their first increase in three weeks and the
biggest weekly rise for Brent since June.
Oil futures climbed earlier in the week due to concerns the
strike in Norway and the hurricane headed for the U.S. Gulf
Coast would cut crude output.
Norwegian oil firms struck a wage bargain with labour union
officials on Friday, ending a 10-day strike that had threatened
to cut the country's oil and gas output by close to 25% next
week. "One of the bullish factors that had been supporting prices
fell apart late in the day when it was announced that Norway
would end their strike," said Phil Flynn, senior analyst at
Price Futures Group in Chicago.
Also weighing on prices were doubts voiced by Republicans in
the U.S. Senate that a coronavirus economic stimulus deal could
be reached before the Nov. 3 election.
Earlier in the day, oil prices briefly turned positive after
U.S. House Speaker Nancy Pelosi said she would resume talks on a
possible $1.8 trillion COVID-19 stimulus package with Treasury
Secretary Steven Mnuchin. Hurricane Delta, meanwhile, dealt the greatest blow to U.S.
offshore Gulf of Mexico energy production in 15 years, halting
most of the region's oil and nearly two-thirds of natural gas
output. Looking ahead, JP Morgan said that a worsening global oil
demand outlook due to a potential rise in coronavirus cases this
winter would likely prompt the Organization of the Petroleum
Exporting Countries (OPEC) to reverse a planned easing of oil
cuts in 2021, with Saudi Arabia offering deeper cuts below its
current quota.

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