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Crude weaker in the U.S. on Wednesday with Brent down and WTI flat

Published 01/25/2017, 03:36 PM
Updated 01/25/2017, 03:37 PM
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Investing.com - Crude prices trended weaker in the U.S. on Wednesday with Brent down and U.S. crude down following an expected build in inventories reported by the Department of Energy, notching a third straight week of gains,

Global benchmark Brent crude fell 0.65% to $55.08 a barrel on London's Intercontinental Exchange, while U.S. crude on the New York Mercantile Exchange ended flat at $53.13 a barrel.

U.S. crude oil inventories rose by 2.84 million barrels at the end of last week, almost in line with the expected gain of 2.85 million barrels the Energy Information Administration (EIA) said on Wednesday, in line and below the 2.9 million barrels reported on Tuesday by the American Petroleum Institute (API).

Gasoline inventories rose by 6.8 million barrels and distillate supplies fell 4 million barrels, EIA said.

Crude prices have mostly held gains this week on widespread agreement a coordinated pact between OPEC and non-OPEC nations to trim 1.8 million barrels-per-day (bpd) from global output is working as well and as dips in the dollar index to seven-week lows that benefit buyers in currencies other than greenbacks.

Futures have traded in a narrow range around the low $50s over the past month as sentiment in oil markets has been torn between expectations of a rebound in U.S. shale production and hopes that oversupply may be curbed by output cuts announced by major global producers. The dollar index fell 0.35% on Wednesday to 99.92.

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