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Crude Oil Falls amid Stockpiles Buildup, Natural Gas Gains on Weather Forecasts

January 25, 2017 at 20:25 by Vladimir Vyun

Futures for crude oil fell today after the increase of US crude oil inventories reported by the Energy Information Administration exceeded the forecast value by almost two times. The stockpiles increased by 2.8 million barrels last week versus the median forecast of a 1.5 million increase. It was the third consecutive weekly gain. At the same time, reserves in Cushing, Oklahoma, fell by 284,000 barrels. Value of contract for delivery of WTI crude oil in March fell by 0.6% to $52.86 per barrel as of 19:59 GMT on NYMEX today. Futures for March Brent crude lost 0.4% to trade at $55.22 per barrel on ICE.

Meanwhile, prices for natural gas climbed amid forecasts of cold weather in the United States. Forecasters predict that temperatures at the start of February will be lower than it has been initially anticipated, and that means higher demand for gas used in heating. Also, traders wait for tomorrow’s supply report, which according to experts should demonstrate a drawdown from US stockpiles by about 121 billion cubic feet. Futures for delivery of natural gas in February jumped 1.59% to $3.33 per million British thermal units on NYMEX.

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