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WTI oil futures slip ahead of inventory data

Published 30/09/2015, 10:09
© Reuters.  U.S. oil futures edge lower ahead of weekly inventory data
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Investing.com - West Texas Intermediate oil futures inched lower on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a faster pace than expected last week.

Crude oil for delivery in November on the New York Mercantile Exchange shed 11 cents, or 0.24%, to trade at $45.12 a barrel during European morning hours.

A day earlier, Nymex oil prices rallied 80 cents, or 1.8%, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.

The U.S. Energy Information Administration was to release its weekly report on oil supplies at 11:00AM Eastern time Wednesday.

The data was expected to show that crude stockpiles rose by 0.1 million barrels last week, while gasoline stockpiles were forecast to decline by 0.1 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 4.6 million barrels in the week ended September 25.

U.S. oil futures are on track for a 25% drop in the second quarter as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery inched up 3 cents, or 0.05%, to trade at $48.26 a barrel during morning hours in London. On Tuesday, Brent futures jumped 89 cents, or 1.88%.

London-traded Brent prices are 25% lower since the end of June amid indications China's economy is losing momentum, fueling fears over sluggish demand.

Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.14 a barrel, compared to $3.00 by close of trade on Tuesday.

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