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Oil steadies as gains capped by OPEC output cut doubts

Published 27/10/2016, 12:37
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Oil stabilized Thursday at lower levels as an unexpected drop in U.S. crude inventories lent support. U.S. crude was up 27 cents, or 0.55% at $49.45 at 06:45 ET after falling below $49 on Wednesday. Brent crude was up 0.84% at $50.40 after dropping below the $50 mark the previous session. Official Energy Information Administration (EIA) figures Thursday showed a surprise fall in U.S. crude stocks. Inventories fell 533,000 barrels when the EIA was forecast to report a build-up of 1.699 million barrels. Despite the fall, U.S. crude stocks remain at an “historically” high level of 468.2 million barrels, underscoring the global supply glut. Doubts remain about OPEC’s ability to deliver a planned cut in output to address the problem. OPEC members are due to meet on November 30 in Vienna in an attempt to seal a tentative accord to curb production. The dollar index edged lower. A weaker dollar supports demand for oil.

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