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OPEC Comments & US Supply Data Bolster Oil Prices

June 10, 2015 at 23:03 by Vladimir Vyun

Futures for crude oil rallied during the Wednesday’s session. West Texas Intermediate crude retreated a bit at the start of the Thursday’s trading while the Brent grade maintained its rally. There has been couple of reasons for the prices to rise.

One of such reasons was the bullish supply report from the US Energy Information Administration. The agency reported that US inventories of crude shrank by 6.8 million to 470.6 million barrels last week. Still, the EIA said that stockpiles “remained near levels not seen for this time of year in at least the last 80 years.”

Meanwhile, the Organization of Petroleum Exporting Countries voiced an opining that oversupply on the market should ease as global demand picks up. It looks like the strategy of keeping prices low has borne fruit. At the same time, there is prospect for increasing supply from some of the OPEC members, and it bodes ill for the commodity.

July contract slipped 0.57 percent to $61.08 per barrel as of 22:55 GMT on NYMEX today after rising 2 percent earlier. Meanwhile, Brent crude jumped 1.26 percent to $65.70 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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