WASHINGTON (dpa-AFX) - Despite rebounding strongly and briefly moving above the flat line, crude oil futures tumbled and settled sharply lower on Friday, weighed down by a firm dollar and a downward revision in global oil demand forecast by the OPEC.
The dollar has been firming against other currencies amid increasing prospects of the Federal Reserve hiking rates sometime next year to rein in rising inflation.
Traders also weighed a likely release of oil from the Strategic Petroleum Reserve. U.S. President Joe Biden is reportedly weighing moves to release oil from SPR to cool energy prices.
West Texas Intermediate Crude oil futures for December ended down by $0.80 or about 1% at $80.79 a barrel.
Brent crude futures were down $0.71 or 0.85% at $82.16 a little while ago.
A report released by Baker Hughes this afternoon said the oil and gas rig count in the U.S. rose six to 556 in the week to November 12, the highest level since April 2020.
The total rig count has increased by 244 rigs or about 0.78% over this time last year.
While oil rigs were up by 4 to 454 this week, gas rigs rose two to 102, the data showed.
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