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Crude Oil Logs Gains on Report of Falling US Inventories

August 2, 2018 at 18:18 by Vladimir Vyun

Crude oil logged impressive gains today, despite the rising US dollar that was weighing on commodities priced in the US currency. Crude rallied on signs that US crude oil inventories may start to decline after the previous build. Industry data provider Genscape reported that stockpiles at the delivery hub for US oil at Cushing, Oklahoma, fell by 1.1 million barrels last week. The report followed yesterday’s official data that showed an unexpected increase of US reserves by 3.8 million barrels.

Previously, prices for oil were falling on news that Saudi Arabia, Russia, and several other countries increased output to compensate for lower supply from Iran in case the United States introduce sanctions against the Middle Eastern nation. ING commodities strategist Warren Patterson said to Reuters:

At the moment, there is a mismatch in timing, where there is increasing OPEC supply and yet we’re not seeing a significant reduction in Iranian supply.

Futures for delivery of WTI crude oil in September jumped as much as 2.11% to $69.09 per barrel as of 18:03 GMT on NYMEX today. Brent crude for delivery in October climbed 1.69% to $73.61 per barrel on ICE.

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