Crude Oil Tumbles 2% As Supply Concerns Fade; Sheds 3.1% For Week

(RTTNews) - U.S. crude oil plummeted to end at a more than two-month low on Friday, as concerns over supply disruptions from the Middle East due to conflicts continued to ease with no fear of production loss in Iraq and Libyan production set to return to normal.

Crude oil futures shed about 3.1 percent for the week, down for a fourth straight week.

Worries over disruption of crude supplies from Libya over the ongoing conflict in the region eased, after rebels controlling oil shipment ports agreed to give up control of terminals which have remained closed for about a year. Libya is expected to provide crude of about 0.5 million barrels per day.

Indications the Iraqi conflict will likely remain confined to north of the country also dragged down oil prices.

Investors largely ignored separate reports from the Organization of the Petroleum Exporting Countries and the U.S. International Energy Agency that projected global demand to grow in 2015 as the world economy continues to recover.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, plunged $2.10 or 2.0 percent to close at $100.83 a barrel on the New York Mercantile Exchange Friday.

Crude prices for August delivery scaled a high of $102.92 a barrel intraday and a low of $100.44.

On Thursday, crude oil futures ended higher, snapping a nine-day losing streak with prices tumbling to its lowest since May 19. Bargain hunting after the longest losing streak since December 2009 and upbeat U.S. jobs data supported oil's rise, while easing concerns about supply disruptions from the Middle East and some weak data from China capped gains.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.18 on Friday, up from its previous close of 80.12 late Thursday in North American trade. The dollar scaled a high of 80.23 intraday and a low of 80.03.

The euro traded lower against the dollar at $1.3608 on Friday, as compared to its previous close of $1.3609 late Thursday in North American trade. The euro scaled a high of $1.3624 intraday and a low of $1.3594.

In economic news, India's industrial production growth accelerated more than expected in May underpinned by strong improvement in electricity and manufacturing. Industrial production expanded 4.7 percent in May from last year, faster than the 3.4 percent increase seen in April, the Central Statistics Office reported. Economists had forecast the annual increase to rise moderately to 3.6 percent.