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Oil Prices Climb After Nine Straight Weeks of US Crude Inventory Declines

July 20, 2016 at 17:35 by Andrew Moran

Oil futures climbed during Wednesday’s trading session after a new report from the US government highlighted nine consecutive weeks of declining US crude stockpiles. This has helped oil rebound from two-week lows.

August West Texas Intermediate (WTI) crude rose $0.40, or 0.90%, to $45.05 per barrel at 17:09 GMT on Wednesday on the New York Mercantile Exchange. This comes after US crude recently hit a two-month low of $43.69 a barrel.

September Brent crude increased $0.63, or 1.35%, to $47.29 a barrel on London’s ICE Futures exchange.

According to a new report from the US Energy Information Administration (EIA), domestic crude supplies fell by 2.3 million barrels for the week ending July 15. This is the ninth straight week of declining stockpiles. Total US crude production jumped 9,000 barrels to 8.494 million barrels per day (bpd). In the lower 48 states, however, output has dropped 29,000 to 8.045 million bpd.

The EIA’s findings were identical to the results published by the American Petroleum Institute (API) on Tuesday.

Oil prices have been falling during the last several trading sessions over fears regarding a potential military coup of the Turkish government. There are also concerns about a possible major supply glut, which could weigh on oil prices in the coming months.

Investors have really been paying attention to the unforeseen oversupply of fuels throughout the US peak summer driving season as well. Gasoline supplies spiked by 900,000 barrels.

Analysts note that Brexit fears have simmered down and investors feel more confident heading into riskier trades like oil.

Since hitting 12-year lows in February, oil prices have recovered approximately 75%. Oil prices touched the important $50 threshold this year for the first time since July 2015.

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

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