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Oil Declines on Bearish Supply Report

November 19, 2014 at 0:49 by Vladimir Vyun

Crude oil fell at the start of Wednesday’s trading session due to an unfavorable supply report from the American Petroleum Institute. The API reported that US inventories of crude rose by 3.7 million barrels last week, and gasoline stockpiles expanded by 519,000 barrels. Traders wait for official data from the Energy Information Administration, which will be released later today. Experts predict that the report will show a small drop of reserves.

Prices also fell as market participants are counting on the Organization of Petroleum Exporting Countries to keep production unchanged. With growing supply and falling demand, it looks like oil has no choice but to fall further.

December futures for delivery of WTI crude oil dropped 0.43 percent to $74.29 per barrel as of 00:38 GMT on NYMEX today. January contract for Brent crude sank as much as 1.06 percent to $78.47 per barrel on ICE.

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