West Texas Intermediate crude traded close to the lowest price in four weeks, according to reports released by the American Petroleum Institute (API), which indicated that the U.S stockpiles increased the most in a month.
The report also indicates that the U.S crude inventories increased by 4.4 million barrels last week to 395.1 million barrels, the highest in over three decades. WTI crude oil was slightly up 0.13% trading at $93.26 a barrel, while Brent crude rose up to 0.31% trading at $102.72 a barrel on Thursday morning.
Futures in New York fell by 2 percent yesterday, marking its biggest drop since May 1st.
Oil investors are focusing towards the Organization of the Petroleum Exporting Countries (OPEC) meeting, which is due to take place on Friday in Vienna. Members of the board and investors are expected to tackle and discuss the issues and topics regarding oil production. OPEC supplies about 40%of global oil supply and now producing 30.4 million barrels per day.
The meeting is expected to review the group’s target for oil production to keep the oil prices above $100 per barrel level. Economists and analysts are predicting, there won’t be a change in the output target.
“Only a little above the organization’s target and this reflects the demand on its crude,” the United Arab Emirates’ Energy Minister Suhail Al Mazrouei said this week. Global demand for crude is expected to stay “relatively weak this year” at around 800,000 barrels per day more than in 2012, the minister added.
The Market sentiment was hit by reports from the OECD that cuts its growth forecast for the global economy from 3.4% to 3.1 this year. While the trader’s outlook got hit after the international Monetary Fund cut its projection for China’s growth in the economy to approximately 7.75% this year.
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