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Prices for Crude Oil Retreat as Trading Resumes After Holidays

May 30, 2017 at 15:47 by Vladimir Vyun

Crude oil dropped today following yesterday’s gains. While prices were able to rise during sluggish trading on Monday as markets in the United States, Great Britain, and China were closed for public holidays, the momentum turned down after normal trading resumed on Tuesday.

Market participants think that efforts made by the Organization of Petroleum Exporting Countries to stabilize prices were not enough. With no additional production cuts, booming US shale production will simply replace supply from the OPEC, resulting in no change for the supply-demand balance.

Traders wait for reports about US crude oil inventories from the American Petroleum Institute and the Energy Information Administration due to release later during the week. The EIA report is usually released on Wednesday, but due to holidays its release was moved to Thursday this week. Last week, the EIA data showed a drop by 4.4 million barrels.

Futures for delivery of WTI crude oil in July slumped 1.22% to $49.19 per barrel as of 15:38 GMT on NYMEX today. Contract for delivery of Brent crude tanked as much as 1.68% to $51.41 per barrel on ICE.

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