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Oil remains below $ 47 per barrel

Oil fell to below $ 47 a barrel on Wednesday after an industry report stated that U.S. inventories increased, reviving fears that the three-year excess supply is still far from complete.

28.Jun.17 5:39 AM
By Daria Zaytseva


Oil remains below $ 47 per barrel

The American Petroleum Institute (API) said on Tuesday U.S. crude inventories rose by 851,000 barrels last week, while analysts expected a decline. Inventories of gasoline and distillates also increased, the API said.

Brent crude LCOc1 was down 9 cents at $46.56 a barrel. It reached a seven-month low of $44.35 on June 21. U.S. crude fell 17 cents to $44.07.

Growth stocks in the United States, suggests that global supply remains sufficient, despite the efforts of the Organization of the Petroleum Exporting Countries to reduce production to 1.8 million Barrels per day from January 2017.

Top exporter Saudi Arabia and the other producers are trying to get rid of the oversupply that has led to the fact that prices have fallen from levels above $ 100 per barrel in mid-2014.

OPEC and its allies agreed on May 25 to extend the supply cut into 2018, but Brent has fallen from as high as $54 since then on rising production from the United States and from Nigeria and Libya, two OPEC members exempt from cutting output.

Traders will be awaiting the official report of the U.S. government on the confirmation of the API data.

A head of the world's largest independent oil trader Vitol, Ian Taylor, said Brent will remain in a range of $40-$55 per barrel in the next few quarters, as growth in U.S. slows the rebalancing of the market.

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