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Oil Moves Down on Amid Middle East Tension Easing

Oil prices are declining again on Friday amid fading war threat in the Middle East, investors have turned their attention to forecasts of economic growth, as well as growth in oil and refined oil products in the U.S.

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The international benchmark Brent eased by 0.18 percent on Friday, to $65,25 per barrel, while U.S. WTI futures with delivery in February decreased by 0.29 percent, to $59,41 per barrel at 0849 GMT. 

It’s vital to remind, that Brent eased in price by 5 percent since the beginning of the week, whereas WTI went down by almost  6 percent, and now oil prices are lower than they were before the U.S. air strike on January 3, when Iran’s general was killed. Iran responded with a missile attack on U.S. military bases in Iraq, which resulted in no casualties.

J.P. Morgan analysts see the logical reduction in prices as risks of interruptions in oil supplies from the Middle East lowered, but pointed to the persistence of “some constant risk for production associated with geopolitical issues in the region.”

The precipitating negative factor for the market remains the U.S. EIA data, which indicated an increase in oil inventories in the world’s largest producer of this fuel for the week, which ended on January 3.