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Crude Oil Jumps More Than 1% After OPEC Meeting

July 24, 2017 at 18:34 by Vladimir Vyun

Crude oil rallied more than 1% following the meeting between the Organization of Petroleum Exporting Countries and its allies in Moscow today. The gathering brought a couple of good news. First, Saudi Arabia announced that it is going to reduce its output to 6.6 million barrels per day in August, 1 million lower than in the same period of the previous year. Second, Nigeria, which was exempt from the OPEC production cut deal, may cap or even reduce its production once it reaches 1.8 bpd.

The CFTC Commitment of Traders report showed that hedge funds continued to increase their long positions on crude oil, while the number of short positive for light sweet crude on the New York Mercantile Exchange actually dropped. Yet doubts still remain that compliance to the production cut agreement will fall by the end of the year, and that can drive oil prices down.

Futures for delivery of WTI crude oil in September jumped as much as 1.25% to $46.34 per barrel as of 18:28 GMT on NYMEX today. Brent grade of oil rallied 1.06% to trade at $48.57 per barrel on ICE.

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