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3/30/2016, 6:12 PM (Source: TeleTrader)
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Oil erases gains after two-hour rally

Oil prices tumbled down from daily highs after rallying for over two hours in the middle of the Wall Street trading day. The commodity broke a tandem rise with stocks, induced by the news of smaller build in inventory in the last week, and helped by a weaker dollar. Earlier the U.S. Energy Information Administration (EIA) reported on Wednesday oil inventories rose by 2.3 million barrels in the week ending March 25 to 534.8 million barrels.

The International Energy Agency tried to sooth markets with its estimation that Iran would not flood the markets with its black gold, despite a significant rise in output from the country, which is trying to retake its place in the markets following years of trade sanctions.

The U.S. light sweet crude West Texas Intermediate rolled down to daily low of $38.40 a barrel at 6:45 p.m. CET (12:45 p.m. EST) after hitting highest price of $41.05 a barrel just an hour before.

The international benchmark Brent also hit daily low of $39.35 a barrel after reaching $41.35 a barrel. The prices for both benchmarks at the ICE Europe later recovered a bit.

The Organization of the Petroleum Exporting Countries reported the OPEC daily basket price of 13 crudes at $34.50 a barrel on Tuesday, similar with $35.48 a barrel on Monday.

Breaking the News / ZR