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Crude Oil Trims Losses as US Inventories Drop More Than Expected

October 12, 2017 at 17:22 by Vladimir Vyun

Crude oil trimmed today’s losses after a report from the Energy Information Administration revealed that US crude oil inventories fell more than was expected. According to the report, the stockpiles decreased by 2.7 million barrel last week. That is compared to the predicted drop by 1.9 million.

Meanwhile, the Paris-based International Energy Agency predicted that the oil market will be well-balanced next year, though that may actually limit gains of oil prices. The agency said:

Looking into 2018, we see that three quarters out of four will be roughly balanced – again using an assumption of unchanged OPEC production, and based on normal weather conditions. However, our current numbers for 1Q18 imply a stock build of up to 0.8mb/d. Taking 2018 as a whole, oil demand and non-OPEC production will grow by roughly the same volume and it is this current outlook that might act as the ceiling for aspirations of higher oil prices.

Contract for delivery of WTI crude oil in November declined 1.99% to $50.28 per barrel as of 17:17 GMT on NYMEX today. Contract for delivery of Brent crude on December dropped 1.58% to $56.04 per barrel on ICE.

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