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Oil Prices Rise After OPEC Meeting

June 5, 2015 at 21:19 by Vladimir Vyun

Crude oil rallied today following yesterday’s losses. The rally was a bit of a surprise to market participants as today’s meeting of the Organization of Petroleum Exporting Countries could be considered negative for the commodity. The OPEC decided to leave its production output at the same level, meaning that oversupply on the market will likely persist.

Many OPEC members were unhappy with the decision and wanted to reduce production as a way to support prices. Yet Saudi Arabia overruled them, wanting to keep the current output level to fight with the United States for a share of the market. Additionally, there were arguments that with the recent bounce of prices there are few reasons to tinker with the market.

July futures for WTI crude oil gained 1.62 percent to $58.94 per barrel as of 21:16 GMT on NYMEX today. Contract for Brent crude rallied as much as 1.85 percent to $63.18 per barrel on ICE.

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

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