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Oil Falls as Iran Ramps Up Production

May 23, 2016 at 18:20 by Vladimir Vyun

Crude oil fell more than 1% percent today (though it has trimmed its losses as of now) as Iran refused to stop the increase of its oil production. This significantly reduced chances for an agreement about an output cut among major oil producers. Additionally, the report from Baker Hughes on Friday showed that the number of US oil rigs was steady for the first time this year, avoiding decline.

Previously, prices were rising due to concerns about supply outages in Canada and some other countries. But specialists say that it is possible for Canada’s production to recover next months, and this should weigh on oil prices.

Contract for delivery of WTI crude oil in July dropped 0.81% to $48.02 per barrel as of 18:09 GMT on NYMEX today. Brent crude lost 0.9% of its value to trade at $48.28 per barrel on ICE.

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