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Oil is trading lower continuing the recent decline after data on U.S. stockpiles was reported yesterday by the American Petroleum Institute. U.S. inventories rose by 10.5 million barrel to a record of 450 million barrel. Analysts expected an increase of 3.8 million. Official data by the EIA, the Energy Information Agency, are due today at 14:30 GMT. Last week stockpiles already reached the most in 80 years. Concerns over a maximum of capacity reached puts further pressure on the price. The U.S. are the world's largest consumer of oil. Brent Crude lost -1.16%, currently trading at USD52.89 a barrel. On January 13th Crude set a low at USD45.19. West Texas Intermediate slumped -2.92% currently quoted at USD42.19.
Oil prices declined by almost 60% between June 2014 and January 2015 and recovered by almost 35% in 2015 before declining again. Although prices rebounded after setting new lows, worldwide supply still exceeds demand in a period of low global economic growth, pushing stockpiles to record highs and weighing on prices.
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