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Crude Oil Sinks amid Detrimental Fundamentals

August 30, 2019 at 21:16 by Vladimir Vyun

Futures for crude oil demonstrated significant losses today, breaking the streak of gains. The commodity still gained over the week, but today’s drop trimmed the gains.

There were plenty of reasons for crude to fall. According to a Reuters survey, the Organization of Petroleum Exporting Countries increased its oil production in August for the first time this year. Russia reduced its oil output slightly less than was agreed upon in the OPEC+ deal. According to the latest projections, Hurricane Dorian is going to miss the Gulf of Mexico, hitting Florida instead, which means no supply disruptions in the United States.

Baker Hughes reported that the number of US oil rigs declined by 12 to 742 this week. The number of gas rigs remained unchanged at 162.

Futures for delivery of WTI crude oil in October slumped by as much as 3.21% to $54.89 per barrel as of 21:11 GMT on NYMEX today. Brent crude dropped 1.06% to $60.43 per barrel on ICE.

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