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Crude Oil Rallies More Than 1%, Brent Hangs Above $50

May 11, 2017 at 16:05 by Vladimir Vyun

Crude oil rallied more than 1% today following yesterday’s jump by more than 3%. The reason for the amazing performance was the bigger-than-expected drop of US crude oil inventories. The Energy Information Administration reported yesterday that the stockpiles shrank by as much as 5.2 million barrel last week. That is compared to the average forecast of 2.0 million.

Not all news were bullish for crude though. The Monthly Oil Market Report released by the Organization of Petroleum Exporting Countries revised the forecast for global oil output in 2017 up by 370,000 barrels per day to 950,000 barrels per day. As a result, the supply-demand balance should remain almost unchanged. The report added to concerns that the increase of output from US producers will undermine attempts by the OPEC to reduce global glut.

Futures for delivery of WTI crude oil in June climbed 1.52% to $48.05 per barrel as of 16:00 GMT on NYMEX today. Contract for delivery of Brent crude in July jumped 1.53% to $50.99 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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