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Rising Supply from OPEC Drives Crude Oil Prices Down

October 2, 2017 at 22:04 by Vladimir Vyun

Crude oil fell more than 1% today amid signs that oil production in the Organization of Petroleum Exporting Countries increased last month. According to the Reuters survey, OPEC output increased by 50,000 barrels per day in September. But according to the Bloomberg estimates, the increase was a big as 120,000 bpd.

The OPEC and several other oil-producing countries agreed last year to curb output as a measure to buoy prices. That move had some success, therefore the signs that the agreement is not being fulfilled are extremely bearish for crude. As Reuters reported, compliance to the deal fell to 86% in September from 89% in August.

Contract for delivery of WTI crude oil in November dropped as much as 2.13% to $50.57 per barrel as of 21:58 GMT on NYMEX today. December contract for delivery of Brent crude went down 1.18% to $56.12 per barrel on ICE.

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