4/13/2016, 9:05 PM (Source: TeleTrader)
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Oil loses steam on U.S. crude stockpiles data

Oil prices erased daily gains as the latest set of data from the have shown a build-up in crude inventories.

U.S. Energy Information Administration (EIA) announced on Wednesday oil inventories rose 6.6 million barrels to 536.5 million barrels in the week ending April 8 compared to the previous week. This follows a decrease of 4.9 million barrels in crude stocks in the week ending April 1.

Earlier on Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) reported that global oil demand was expected to be at 1.20 million barrels per day (mb/d) in 2016, which is 50 thousand barrels per day lower than previously forecasted.

The OPEC-hosted talks on crude output freeze, scheduled for April 17 in Doha, Qatar, have raised little hope that oversupply would be curbed in a deal without Iran. On top of that, oil minister of Saudi Arabia Ali al-Naimi all but extinguished hopes after saying that production cut in his country was out of question.

Light sweet crude West Texas Intermediate for May delivery ended trading 1.17% lower at $41.68 a barrel, after hitting daily high of $43.68 a barrel. Last price in the U.S. stood at $41.76 a barrel. The international benchmark Brent for delivery in June traded 1.20% lower at $44.16 a barrel with daily high of $44.94 a barrel, at the ICE Europe at 9:00 p.m. CET (3:00 p.m. EDT).

The OPEC has posted its daily basket price of 13 crudes at $38.62 a barrel on Tuesday, compared with $37.02 the previous day.

Breaking the News / ZR