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Crude Oil Prices Tank amid US Gasoline Stockpiles Growth

April 19, 2017 at 18:01 by Vladimir Vyun

Futures for crude oil slumped more than 2% today even as US stockpiles declined. The Energy Information Administration reported that crude oil inventories shrank by 1 million barrels last week, about as much as analysts had predicted. At the same time, gasoline inventories grew by 1.5 million barrels even though experts had forecast a decline. Markets considered the growth of gasoline reserves as a sign that demand for fuel was lackluster. That drove oil prices down.

Meanwhile, OPEC Secretary-General Mohammad Barkindo said today that the Organization of Petroleum Exporting Countries remains committed to supporting oil prices by reducing output. He said that compliance with the production cut agreement was better in March than in February. Yet it looks like the increase of US production undermines any efforts the OPEC did to buoy prices.

Contract for delivery of WTI crude oil in May slid 2.19% to $51.26 per barrel as of 17:44 GMT on NYMEX today. Futures for delivery of Brent crude in June declined 2.28% to $53.64 per barrel on ICE.

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