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WTI Crude Jumps Above $56 After Two Days of Losses

February 12, 2015 at 20:51 by Vladimir Vyun

Prices for West Texas Intermediate crude oil jumped above the $56 per barrel level today, and the Brent grade also gained during the current trading session. Crude was falling for the previous two sessions.

Futures rallied on speculations that oil producers will cut output after prices almost halved since June. The drop of dollar after poor US economic data also helped oil to gain. Additionally, the cease-fire agreement between Ukraine and pro-Russian rebels damped risk aversion among traders, making them more willing to buy raw materials.

Prices advanced even as US crude oil inventories continued to expand to yet another record. The Energy Information Administration reported that stockpiles grew by 4.9 million barrels to 417.9 million barrels last week.

March contract for delivery of WTI crude oil climbed as much as 5.30 percent to $51.43 per barrel as of 20:38 GMT on NYMEX today. Brent crude added 4.37 percent to trade at $57.05 per barrel on ICE.

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