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Oil Halts Its Strong Rally

February 4, 2015 at 13:52 by Vladimir Vyun

Today, crude oil ended its impressive rally, demonstrating big losses. The West Texas Intermediate crude dropped more that 2 percent during the current trading session while the decline of the Brent grade was a bit smaller but substantial nevertheless. Before the drop, WTI oil has rallied 19 percent since January 29 when it hit the lowest level in five years and a half.

The reason for the decline is concerns about the buildup of US inventories. The American Petroleum Institute reported that stockpiles grew by more than 6 million barrels last week. While analysts expect that today’s government report from the Energy Information Administration will show a smaller increase, it will add to the already record amount of US oil reserves.

Previously, oil was rising on worries that supply from the United States will dwindle.

March futures for WTI crude oil sank 2.36 percent to $51.80 per barrel as of 13:47 GMT on NYMEX today. Brent crude lost 1.80 percent to $56.87 per barrel on ICE.

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