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Crude Oil Struggles to Move Higher amid Conflicting Fundamentals

Summary:
Prices for crude oil attempted to rally earlier today but have retreated to stay almost flat as positive fundamentals were fighting with negative ones. Currently prices are moving up again. The pledge by Saudi Arabia to cut its oil output further in April remained a major supporting factor for crude. The unrest in Libya and US sanctions against Iran and Venezuela were also contributing to the upside momentum of the commodity. Yet there were negative factors as well, like the downgrade of global consumption forecast by the US Energy Information Administration. The EIA reduced its world demand growth outlook for 2019 by 40,000 barrels per day to 1.45 million bpd and for 2020 by 20,000 bpd to 1.46 bpd. The agency will also release tomorrow its estimates of US crude oil inventories last week.

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Prices for crude oil attempted to rally earlier today but have retreated to stay almost flat as positive fundamentals were fighting with negative ones. Currently prices are moving up again.

The pledge by Saudi Arabia to cut its oil output further in April remained a major supporting factor for crude. The unrest in Libya and US sanctions against Iran and Venezuela were also contributing to the upside momentum of the commodity.

Yet there were negative factors as well, like the downgrade of global consumption forecast by the US Energy Information Administration. The EIA reduced its world demand growth outlook for 2019 by 40,000 barrels per day to 1.45 million bpd and for 2020 by 20,000 bpd to 1.46 bpd.

The agency will also release tomorrow its estimates of US crude oil inventories last week. Analysts predicted that the report will show an increase of 2.9 million barrels following the previous week’s massive increase of 7.1 million barrels.

Contract for delivery of WTI crude oil in April gained 0.18% to $56.89 per barrel as of 18:35 GMT on NYMEX today. Brent crude for delivery in May advanced 0.17% to $66.69 per barrel on ICE.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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