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Crude Oil & Natural Gas Rally on Prospects for Higher Demand

June 23, 2015 at 19:10 by Vladimir Vyun

Crude oil rallied today ahead of tomorrow’s supply reports from the American Petroleum Institute and the Energy Information Administration. Analysts expect the data to show a drop of inventories as fuel usage increased due to the summer driving season. Crude rallied even though the rising US dollar was detrimental to commodities during the Tuesday’s trading session. August futures for WTI crude oil climbed 1.26 percent to $61.14 per barrel as of 19:02 GMT on NYMEX today. Contract for delivery of Brent grade of oil surged as much as 1.99 percent to $64.60 per barrel on ICE.

Natural gas managed to join the rally initially before pulling back later. The commodity gained on weather forecasts that predict higher-than-norm temperatures in the United States that should increase consumption of the gas used in air conditioning. Futures also got boost from speculations that utilities and power generators will switch from coal to natural gas due to the recent slump of prices. However, July futures for natural gas fell by 0.48 percent to $2.72 per million British thermal units on NYMEX after rallying by 1.5 percent to $2.80 earlier.

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