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Oil markets adrift after reaching 2015 high

Sentiment points to a lingering bear market for crude despite rally.

By Daniel J. Graeber

NEW YORK, April 24 (UPI) -- Crude oil prices were in mixed territory early in the Friday session following a record-setting day, though analyst sentiment still favors a bear market.

The price for Brent crude oil, the global benchmark, made modest gains early Friday to trade near $65 per barrel, its record high for the year. Brent struggled to hold $50 per barrel in late 2014 and early 2015 as markets were weighed heavily on the supply side. For the week, the price is up 3.6 percent after hitting a record high for the year in Thursday's session.

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Crude oil prices are low enough to put pressure on the exploration and production side of the global energy sector as companies cut spending plans for the year. Oil services company Baker Hughes said in its weekly rig count report, a key industry barometer, the U.S. sector slowed by 34 rigs, or 3.4 percent, during the week ending April 17.

The total U.S. rig count is down 47 percent year-on-year. That, in turn, is serving as a governor on oil production growth from shale basins in the Lower 48.

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West Texas Intermediate, the U.S. oil price standard, lost 1.3 percent from Thursday to sell for $56.94 per barrel. WTI is nevertheless up about 2.8 percent for the week.

A research note from French financial services company Societe General said U.S. crude oil production may plateau as early as next month. Though it was revising its forecast for price trends upwards, the note said its investors "remain bearish" for crude oil through June.

A daily brief from the U.S. Energy Information Administration said Friday the low price of oil could make some U.S. projects "uneconomic" in 2015.

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