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Oil Prices Rise as US Stockpiles Shrink

June 12, 2014 at 3:03 by Vladimir Vyun

Crude oil rallied today after US inventories dropped. Stockpiles of crude were down 2.6 million barrels in the previous week from the week before. It was a bigger drop than predicted 1.3 million.

The United States is the biggest oil consumer in the world. Shrinking reserves suggest that demand in the USA is growing and this should support prices. Additionally, the Organization of Petroleum Exporting Countries agreed to keep its production quota at 30 million barrels per day, meaning that the organization is comfortable with the current level of prices.

Futures for delivery of WTI crude oil in July advanced $0.23 (0.22 percent) to $104.63 per barrel as of 2:57 GMT on NYMEX today. Contract for Brent grade of oil rose $0.41 (0.37 percent) to $110.36 per barrel on ICE.

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