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Crude Oil Falls, Natural Gas Follows Despite Bullish Supply Report

November 16, 2017 at 21:59 by Vladimir Vyun

Crude oil fell today amid doubts that the Organization of Petroleum Exporting Countries will be able to convince its allies to extend oil production cuts. The OPEC will meet in Vienna on November 29, and previously market participants were certain that the gathering will result in an extension of the cuts. Yet now, there are doubts as rumors spread that Russia, which was supporting the measure previously, now is not sure it wants to support the deal further. Concerns about rising supply from the United States was another reason for the oil’s drop as the International Energy Organization predicted that the USA will be responsible to 80% of global production growth in the next decade. December futures for delivery of WTI crude oil fell 0.31% to $55.16 per barrel as of 21:33 GMT on NYMEX today. January contract for Brent crude declined 0.73% to $61.42 per barrel on ICE.

Natural gas followed crude in decline even though the supply report released by the Energy Information Administration was bullish. The EIA reported that US inventories dropped by 18 billion cubic feet last week — a bigger drop than 15 billion predicted by analysts. What is more, it was the first decline since March. Yet December contract for natural gas slipped 0.16% to $3.08 per million British thermal units on NYMEX today.

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