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Crude falls as stockpiles rise at key U.S. delivery point

Published 08/27/2014, 01:11 PM
Updated 08/27/2014, 01:12 PM
Crude prices edge lower as supplies rise at key U.S. delivery hub
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Investing.com - Crude prices slipped on Wednesday despite a bullish weekly supply report, as the data revealed that inventories rose at a key U.S. delivery point.

In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in October traded down 0.25% at $93.63 a barrel during U.S. trading. New York-traded oil futures hit a session low of $93.39 a barrel and a high of $94.24 a barrel.

The October contract settled up 0.55% at $93.86 a barrel on Tuesday.

Nymex oil futures were likely to find support at $92.50 a barrel, Thursday's low, and resistance at $94.35 a barrel, Tuesday's high.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 2.1 million barrels in the week ended Aug. 22, far surpassing expectations for a decline of 1.3 million barrels.

Total U.S. crude oil inventories stood at 360.5 million barrels as of last week.

The report also showed that total motor gasoline inventories decreased by 1.0 million barrels, compared to forecasts for a decline of 1.1 million barrels, while distillate stockpiles increased by 1.3 million barrels.

Oil prices slumped, however, after the data revealed that stockpiles at the WTI price settlement point in Cushing, Oklahoma, rose by 508,000 barrels to 20.7 million last week, the fourth straight week of gains, leaving markets to conclude that supplies remain plentiful in the world's largest consumer of crude.

Separately, on the ICE Futures Exchange in London, Brent oil futures for October delivery were down 0.09% at US$102.41 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$8.78 a barrel.

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