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Oil futures settled lower Friday in a volatile session as diplomatic progress on the geopolitical front continued to squeeze a risk premium out of the market.

China's cabinet on Friday approved a detailed plan allowing foreign companies to invest in more service sectors in the Shanghai Free Trade Zone (FTZ).

The net income of China's industrial companies gained traction in the first eight months, offering further evidence of economic stabilization.

Analysts believe China may cut the price of refined oil on Friday in response to a drop in global crude oil prices.