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Oil Drops as Growth of Stockpiles Beats Forecasts

October 3, 2013 at 1:33 by Vladimir Vyun

Crude oil dropped today as US inventories swelled more than two times the forecast value. The stockpiles expanded by 5.5 million barrels to 363.7 million barrels last week. Analysts have predicted an increase at about the same rate as in the previous week — 2.6 million.

The partial US government shutdown continues to affect markets negatively. Additionally, US employment report showed growth by 166,000 jobs in September, frustrating traders who have hoped for at least 177,000. On top of that, the previous reading was revised negatively. The news hurt the dollar, but this did not help oil.

November futures for delivery of WTI crude oil slipped $0.36 (0.35 percent) to $103.74 per barrel as of 1:27 GMT on NYMEX today. Contract for Brent crude lost $0.25 (0.23 percent) to $108.94 per barrel on ICE.

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