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Fundamentals Continue to Support Crude Oil

July 10, 2019 at 19:34 by Vladimir Vyun

Futures for crude oil jumped 4% today as fundamental factors remained supportive of the commodity.

The Energy Information Administration reported that US inventories of crude declined by 9.5 million barrels last week, whereas experts had predicted a much smaller decrease by 1.9 million barrels. The official data was in line with the report from the American Petroleum Institute, which also showed a huge draw.

US producers cut almost third of Gulf of Mexico oil production, shutting down operations in preparations to the storm that is expected to turn into a hurricane.

Comments from the Federal Reserve Chairman Jerome Powell and the minutes of the June monetary policy meeting released by the Federal Open Market Committee today solidified the outlook for an interest rate cut this month and probably the next. This sent the US dollar down, bolstering commodities priced in the greenback.

Futures for delivery of WTI crude oil in August jumped 4.13% to $60.22 per barrel as of 19:28 GMT on NYMEX today. September futures for Brent crude climbed 3.96% to $66.70 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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