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Crude Oil Gains on OPEC Report, Under Pressure from API Data

July 12, 2016 at 23:52 by Vladimir Vyun

Futures for crude oil rallied on Tuesday with the help of bullish Oil Market Report for June released by the Organization of Petroleum Exporting Countries. The OPEC predicted a decrease of 0.74 million barrels per day to 564 mb/d in 2016. At the same time, it is expected that global demand will rise by 1.2 mb/d to 94.18 mb/d this year. Overall, it looks like that world’s supply and demand should become more balanced.

Despite the positive report, crude oil remained under pressure from concerns that the Brexit will hurt the global economy. Slowing growth would mean lower consumption of oil. Adding to the negative factors for crude, the American Petroleum Institute reported about an unexpected increase of US inventories by 2.2 million barrels last week.

Futures for delivery of WTI crude oil in August went down 0.75% to $46.45 per barrel on NYMEX during early hours of Wednesday’s trading after rallying 4.6% on Tuesday. September Brent crude jumped 4.8% to $48.47 per barrel on ICE.

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