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Prices for WTI crude oil declined moderately, having fallen under the influence of a government report on oil stocks. Meanwhile, the price of Brent crude oil has risen, due to the escalation in Iraq, where the conflict between radical Sunni insurgents and Shiite Iraqi soldiers. According to media reports, the largest oil refinery in Iraq was attacked by Sunni militants on Wednesday.
With regard to the report from the U.S. Department of Energy, it showed:
- Commercial oil reserves in the vaults of the U.S. in the week 7-13 June fell by 579,000 barrels to 386.3 million barrels, while the average forecast assumed their fall by 1.1 million barrels.
- Gasoline inventories rose by 785,000 barrels to 214.3 million barrels (analysts had expected growth of 200,000 barrels).
- Distillate inventories rose by 436,000 barrels to 119.4 million barrels, while analysts had expected an increase of 400,000 barrels.
- Refining capacity utilization rate fell 0.8 percentage points to 87.1% (analysts expected growth rate by 0.8 percentage points).
We also recall that yesterday's report from the Institute of Oil API showed:
- Capacity utilization in the week 87.3% vs. 87.8%
- Distillate stocks last week 0.531 million barrels
- Gasoline inventories last week -0.048 million barrels
- Crude oil inventories -5.7 million barrels
Meanwhile, market participants remained cautious ahead of the Federal Reserve statement. Market analysts predict that the Fed would reduce its bond buying program by $ 10 billion from the current $ 45 billion due to the improved economy. The announcement will be followed by a press conference with Fed Chairman Janet Yellen, amid speculation about the timing of a possible rise in interest rates. The Central Bank will also provide their regular forecasts for economic growth, inflation and interest rates.
Cost of the August futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $ 105.57 a barrel on the New York Mercantile Exchange (NYMEX).
August futures price for North Sea Brent crude oil mixture rose $ 0.57 to $ 113.85 a barrel on the London exchange ICE Futures Europe.
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