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2017.10.1903:06:00UTC+00Tighter U.S. Market, Political Tensions Support Oil Prices

Oil prices were on steady footing on Thursday, propped up by the ongoing initiative by OPEC and non-OPEC producers to cut supply, Middle East tensions and tightening U.S. market conditions due to hurricane-enforced refinery closures.

Brent crude futures traded at $58.10 per barrel, slightly lower than their last closing level, but near 30 percent above the midyear level of prices.

U.S. WTi crude traded at $51.97 per barrel, also marginally lower from its previous close, but almost one quarter higher than in June.

According to a report by the U.S. EIA, U.S. crude inventories declined by 5.7 million barrels in the latest week to October 13, bringing the total volume of reserves to 456.49 barrels.

Meanwhile, U.S. production declined by 11 percent from the prior week to 8.4 million bpd, the lowest average daily production since June 2014 as production had to be halted due to tropical storm Nate, which devastated the U.S. Gulf coast earlier in the month.

Analysts added that the political instability in the areas of Middle East to South America, particularly the 'Fragile Five' petrostates, were posing risks of supply disruptions that helped support prices.

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