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Crude Oil Falls on Oversupply Concerns, Natural Gas Rallies After EIA Report

June 15, 2017 at 18:36 by Vladimir Vyun

Crude oil dropped today amid concerns that efforts of the Organization of Petroleum Exporting Countries to limit global supply failed. Prices were falling despite the oil production cuts as producers in the United States and the OPEC members exempt from the output cut deal took the chance to seize the market share and pump more oil. That undermined the attempts to reduce oversupply on the market. Futures for delivery of WTI crude oil in July dropped 0.65% to $44.44 per barrel as of 18:25 GMT on NYMEX today. August contract for Brent crude declined 0.24% to $46.84 per barrel on ICE. Yesterday, futures for oil slumped by about 4% due to the unexpected increase US gasoline inventories.

Meanwhile, prices for natural gas jumped after the bullish report from the Energy Information Administration. The EIA reported that US inventories rose by 78 billion cubic feet last week. That was less than an 88 billion gain predicted by analysts and the increase by 106 billion registered the week before. Natural gas for delivery in July climbed as much as 4.26% to $3.06 per million British thermal units on NYMEX today.

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