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After moving sharply higher in the previous session, the price of crude oil initially saw further upside in early trading on Friday but turned lower over the course of the day.
Crude for February delivery fell $0.67 or 0.9 percent to $73.41 a barrel after reaching a high of $74.91 a barrel. The more actively trade March contract slumped $0.70 or 1.0 percent $73.25 a barrel.
The downturn by the price of crude oil may have reflected profit taking after the front-month contract spiked by 2.1 percent on Thursday.
Traders also continued to weigh concerns about Middle East tensions against uncertainty about the outlook for global demand.
"While the price of crude remains sensitive to events in the Middle East, as we've seen over the last couple of weeks, the oil market remains well-balanced which is why we're not seeing prices higher," said Craig Erlam, OANDA Senior Market Analyst, UK & EMEA.
He added, "Supply disruptions remain an upside risk but there are downside risks too including the global economy and OPEC+ unity."