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Crude Oil Backs Off After Rising on Monday, Brent Stays Above $50

October 4, 2016 at 2:20 by Vladimir Vyun

Crude oil retreated a bit on Tuesday after rising on Monday. The rise was a result of the call by Iran for other major producers to join the Organization of Petroleum Exporting Countries in efforts to buoy oil prices. Last week, the OPEC announced that its members agreed to cut production in order to support prices. While market participants were skeptical about the deal initially, it looks like now they are warming up to it. Russia has already made hints that it is willing to join in the efforts to propel crude higher.

Yet not every piece of news was good for the commodity. There was news that Iran boosted its exports almost to the levels it had hit in 2011 before sanctions from Western nations, though analysts argue that the nation may struggle to increase its production further. Uncertainty about Deutsche Bank weigh on the traders’ risk sentiment as Germany’s biggest bank has not yet reached an agreement with US authorities about the fine for selling toxic mortgage-backed securities.

November futures for delivery of WTI crude oil slipped 0.66% to $48.49 per barrel as of 2:09 GMT on NYMEX today. December contract for Brent crude went down 0.55% to $50.61 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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