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Oil Rises on Concerns About Supply & Cushing Inventories

May 14, 2014 at 23:34 by Vladimir Vyun

Prices for crude oil futures rose today. There were several reasons for the rally. One of the reasons was the sanctions against Russia for its involvement in the political crisis in Ukraine. It is the worst stand-off between Russia and the West since the Cold War. It may result in disruption of oil supply from Russia, the biggest energy exporter.

Another reason for the rise of prices was the report from the Energy Information Administration that showed drop of Cushing inventories. Stockpiles dropped by 592,000 to 23.4 million barrels last week — the lowest level since December 2008. Signs of increasing demand for gasoline also helped prices. Crude rose even as US inventories expanded.

June futures for delivery of WTI crude oil rose $0.26 (0.26 percent) to $101.96 per barrel as of 23:19 GMT on NYMEX today. Contract for Brent grade of oil advanced $0.95 (0.87 percent) to $110.19 per barrel on ICE.

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