Oil keeps falling ahead of US inventory data
2017-12-05 13:44:17 GMT (Economies.com)
Oil keeps falling ahead of US inventory data

Oil prices widened their losses in European trade on Tuesday, heading for the second loss in a row as the dollar lost ground while traders await initial data later today on US crude stocks, as losses were curbed by a drop in OPEC's output to a six-month low. 


As of 12:34 GMT, US West Texas Intermediate fell to $57.10 a barrel from the opening of $57.44, while Brent declined to $62.20 a barrel from the opening of $62.43. 


US crude lost 1.5% yesterday, while Brent shed 1.9%, the first loss in three days, after data showed a rise in the US oil rig count. 


The dollar rose over 0.2% for the second session, in turn hurting dollar-denominated commodities, while US crude output rose by over 15% since June 2016 to a total of 9.68 million bpd in the week ending November 24, a record high. 


The US now is the third largest oil producer in the world, near Russia and Saudi Arabia, while later today, the American Petroleum Institute will release data on US crude stocks, expected to rise for a second week. 


Other data showed OPEC output fell by 80 thousand bod in November to 32.47 million bpd, the lowest since May. 


Goldman Sachs raised their projections for US crude prices in 2018 to $57.5 a barrel from $55, and for Brent to $62 a barrel from $58, as global inventories are expected to recede after OPEC's extension of the output cut deal. 

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