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Things Change for Crude Oil: Brent Outperforms WTI

December 11, 2013 at 21:34 by Vladimir Vyun

Recently, West Texas Intermediate grade of crude oil was outperforming Brent grade, but today oil behaved differently as Brent rallied, while WTI fell. US oil stockpiles declined much more than was expected, but this did not prevent the drop of WTI grade, which is used in America. US inventories were down 10.6 million to 375.2 million barrels last week, while experts anticipated just a 2.2 million fall.

The International Energy Agency predicted that oil consumption will increase by 1.2 million barrels per day (1.3 percent) to 92.4 million per day in 2014, while output from the Organization of the Petroleum Exporting Countries will dwindle. Not everything was bullish for crude though. Non-OPEC production will increase, offsetting smaller supply from OPEC. Moreover, there is a possibility that sanctions against Iran will be eased, meaning additional supply on the oil market.

WTI crude oil for delivery in January lost as much as $1.09 (1.11 percent) to $97.39 per barrel as of 21:29 GMT on NYMEX today. At the same time, Brent crude added $0.35 (0.32 percent) to $109.73 per barrel on ICE.

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