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Crude in Free Fall amid Ample Supply

December 17, 2014 at 6:30 by Vladimir Vyun

Crude oil extended its free fall today on signs that no oil-producing country is going to reduce output as an attempt to support prices. Russia followed the path of the Organization of Petroleum Exporting Countries as it declined to cut production even though the declining prices hurt the country’s economy strongly. With ample supply, there are few reasons for crude to stop falling.

Talking about ample supply, the American Petroleum Institute reported that US inventories grew 1.9 million barrels last week. The Energy Information Administration will release an official report later today. Analysts speculated that it may show a decline by 2.6 million barrels.

January futures for WTI crude oil sank as much as 1.95 percent to $54.84 per barrel as of 6:23 GMT on NYMEX today. February contract for Brent crude declined 1.13 percent to $59.33 per barrel on ICE.

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