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Crude Oil Heads Lower Despite Positive News

June 15, 2016 at 22:28 by Vladimir Vyun

Prices for crude oil fell today even though fundamentals looked good, at least at the first glance. US crude oil inventories shrank for the fourth week in a row. North Dakota’s oil output demonstrated the all-time biggest drop in April. The Federal Reserve revised its projected path for interest rate increases lower, sending the dollar down and some commodities (like gold) higher.

Yet all the positive news was unable to help oil, not to mention that not everything was as good as it looked. Despite the drop of US reserves, Cushing stockpiles actually rose. The Fed announcement was accompanied by the lower forecast for economic growth — not a good sign for oil demand. And on top of all that, Brexit fears continue to spook traders, making them less willing to buy growth-related assets.

Contract for delivery of WTI crude oil in July dropped 1.23% to $47.42 per barrel as of 22:18 GMT on NYMEX today. Brent crude for delivery in August declined as much as 1.73% to trade at $48.97 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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