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Oil Gains, Ignoring Bearish US Supply Report

January 22, 2016 at 2:57 by Vladimir Vyun

Crude oil bounced from the 12-year lows as speculators cashed in on record short positions after some positive news for the commodity. Forecast of cold weather in the United States and Europe suggests possible increase in demand for heating oil. The European Central Bank hinted at possibility of additional monetary easing in March, boosting global stocks higher that dragged oil prices along with them.

Prices for crude rose despite the bearish supply report from the US Energy Information Administration. The EIA reported that US inventories of crude expanded by 4 million last week. Ahead of the report, specialists had predicted a smaller increase by 3.3 million.

March contract for delivery of WTI crude oil gained 0.71 percent to $29.74 per barrel as of 2:53 GMT on NYMEX today. Brent grade of oil advanced 0.96 percent to $29.53 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

One Response to “Oil Gains, Ignoring Bearish US Supply Report”

  1. Mallikarjuna Swamy T S

    Look forward to get the update on the crude oil price.


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