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Oil drops in price after rising the day before, and Brent is $40.49 per barrel

28.10.2020,11:26


October 28, Fineko/abc.az. Oil prices are falling in Wednesday’s trading amid the data about the growth of oil stocks in the U.S.

The American Petroleum Institute (API) reports on Tuesday that U.S. crude inventories increased by 4.6 million barrels in the week ended on 23 October.

According to API data, gasoline reserves grew by 2.3 million barrels and distillates reduced by 5.3 million barrels. Oil stocks at the Cushing Terminal increased by 136,000 barrels.

By 9:20 am, at the London ICE Futures Exchange the Brent crude futures for December declined in price by $0.71 (1.72%) to $40.49 per barrel. At the end of trading on 27 October the price of Brent crude futures for December grew by $0.74 (1.83%) up to $41.20 per barrel.

By 9:20 am, at the New York Mercantile Exchange (NYMEX) the WTI crude futures for December decreased by $0.87 (2.20%) to $38.70 per barrel. At the end of trading on 27 October the December WTI futures grew in price by $1.01 (2.62%) up to $39.57.

Analysts expect that data from the U.S. Department of Energy will show an increase in oil reserves by 200,000 barrels. According to their calculations, gasoline reserves in the country lowered by 700,000 barrels and distillates by 2.5 million barrels.

The U.S. Department of Energy will release a weekly report on the country's energy reserves on Wednesday evening.