Oil cuts losses as Bakken supply rumor ripples through market

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U.S. oil rose on Friday on market talk of decreased supply from the Bakken shale in North Dakota.

Crude oil loadings at a dozen major North Dakota rail terminals fell by more than 200,000 barrels on average in the past two days, data from industry intelligence provider Genscape showed on Friday.

The U.S. Federal Railroad Administration said that any talk of a shutdown at the Bakken oilfield terminals was "a rumor." However, market chatter about a rail terminal shutdown in the Bakken drove U.S. oil up 34 cents in one minute at 10:35 a.m. Eastern.

U.S. oil, or West Texas Intermediate (WTI), ended 19 cents higher to settle at $102.59. Brent crude was flat near $109 a barrel.

Tension in Ukraine and lower estimates for U.S. gross domestic product capped gains. Growing concern about the demand outlook for the United States and China, the world's largest and second-largest oil consumers respectively, have weighed on prices. China's yuan looked set for its biggest daily loss on record on Friday.

The U.S. Commerce Department reported Friday that GDP expanded at a 2.4 percent annual rate in the fourth quarter, down sharply from the 3.2 percent pace reported last month and shy of analyst expectations, according to a Reuters poll.

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