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Crude Falls due to News from USA & Abroad

May 30, 2014 at 18:54 by Vladimir Vyun

Crude oil fell today as reports from the United States were not particularly good, suggesting that demand for energy in the biggest world economy may be limited. Personal spending decreased in April and the consumer sentiment worsened in May. Today’s data followed yesterday’s reports that demonstrated decline of the US economy and growth of oil inventories. All in all, news from the United States was not good for crude.

Crude oil also has the similar problem as gold — receding tensions in Eastern Europe. Previously, prices climbed due to the conflict between Russia and Ukraine, but the rally reversed as the situation calmed and risk premium has gone away. There were reports from Pentagon today that Russian troops withdrew from the border with Ukraine, confirming that geopolitical risk diminished, at least for now.

July futures for delivery of WTI crude oil declined $0.94 (0.91 percent) to $102.64 per barrel as of 18:48 GMT on NYMEX today. Contract for Brent subtracted $0.61 (0.55 percent) $109.36 per barrel on ICE.

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