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Brent crude and West Texas Intermediate rebound from near 5-1/2 year lows on Wednesday after the price slump on Monday and Tuesday as slower drilling in the U.S. is visible. BHP Billiton announced to reduce the number of U.S. shale-rigs from 26 to 16. But a cut in growth forecast by the IMF and weaker data from China weigh on prices and keeps them near recent lows. China is the world second largest consumer of oil and has an important impact on demand. Markets look ahead to data on U.S. API Crude Oil Inventories due at 21:30 GMT. Today Iraqi Oil Minister Adel Abdul-Mahdi said that prices have probably reached their bottom. Brent Crude added +1.63%, currently trading at USD48.77 a barrel. West Texas Intermediate rose by +1.03% currently quoted at USD46.95.
Oil prices fell by nearly 60 percent over the past six months, and both the key brand of oil is currently trading below $ 50 a barrel as the supply of high quality light crude oil from the United States and Canada exceeded demand in a period of low global economic growth.
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