Oil Erases Gains on Stockpiles Growth & Economic Slowdown
Crude oil advanced yesterday and initially continued to rise today, but later snapped its gains and retreated. One of the reasons for the drop was expectation of increasing US inventories. Analysts predicted that tomorrow’s government report will show an increase of US crude stockpiles by 1.3 million barrels.
Crude also fell on concern that global economic growth will slow. The International Monetary Fund released decreased its growth estimate this month, compared to the September projections. Slower growth means lower demand for fuel.
Crude oil fell $1.14 to $91.25 per barrel on NYMEX today. Yesterday, it rose $3.06 yesterday to $92.39, the highest level since October 1. Brent grade of crude slid $0.17 to $114.33 per barrel on ICE.
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