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Oil Bounces After Decline

December 11, 2014 at 7:48 by Vladimir Vyun

Crude oil rallied today after yesterday’s drop even though fundamentals were detrimental to the commodity. The Organization of Petroleum Exporting Countries reduced its global demand outlook for the next year in its monthly report. The organization decided last month not to decrease output even as prices are falling. When asked by reports yesterday, Saudi Arabia’s oil minister Ali Al-Naimi said:

Why should I cut production? This is a market and I’m selling in a market. Why should I cut?

The Energy Information Administration reported yesterday that US stockpiles grew by 1.5 million barrels to 380.8 million and are above the upper limit of the average range for this time of year. Market participants were counting on a 2.6 percent decline.

January futures for delivery of crude oil gained 0.57 percent to $61.29 per barrel as of 7:35 GMT on NYMEX today. Brent crude added 0.39 percent to $64.49 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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