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Oil Prices Under Pressure from Oversupply

May 14, 2015 at 18:38 by Vladimir Vyun

Crude oil futures fell today due to concerns about oversupply on the market as the US stockpiles remain at the record level while prospects for return of Iranian oil to global markets added to the downside pressure on prices. On top of that, the dollar bounced today following the earlier decline, weakening raw materials priced in the US currency.

Yesterday’s report from the Energy Information Administration could have been supporting for the commodity as it showed a drop of US inventories by 2.2 million barrels last week, noticeably more than was expected. Yet at 484.8 million barrels, reserves remain at the highest level for this time of year in at least the last 80 years. Additionally, there was a report about an unexpected increase of output from North Dakota, the second biggest oil-producing state.

June futures for delivery of WTI crude oil declined 1.57 percent to $59.55 per barrel as of 18:33 GMT on NYMEX today. Contract for Brent crude lost 0.39 percent to $66.55 per barrel on ICE.

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