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NYMEX crude recovers slightly in Asia as supply focus intensifies

Published 09/18/2014, 07:41 PM
Updated 09/18/2014, 07:44 PM
NYMEX crude up in Asia

Investing.com - Crude oil prices rebounded slightly in Asia on Friday even as storage woes for bulging crude supplies hang over the market as production outpaces demand for now.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in November traded at $92.05 a barrel, up 0.08%, after hitting an overnight session low of $91.84 a barrel and a high of $93.59 a barrel.

Brent oil fell 1.3% to $97.70 on ICE Futures Europe Thursday.

Overnight, oil prices moved lower in U.S. trading on expectations for the Federal Reserve to close stimulus programs next month and raise interest rates next year, which would open the door to a stronger dollar.

The Federal Reserve on Wednesday said that it will likely close its monthly bond-buying program in October and suggested it will raise interest rates in 2015.

While some time will pass when the bond-buying program closes and rates begin to rise, investors concluded that borrowing costs are set to climb in 2015 regardless, which should open the door to a gradual strengthening trend for the dollar.

Wednesday's bearish U.S. storage data added to the selloff.

The U.S. Energy Information Administration said in its weekly report on Wednesday that U.S. crude oil inventories increased by 3.7 million barrels in the week ended Sept. 12, confounding expectations for a decline of 1.7 million barrels, which stoked fears of a supply glut.

Total U.S. crude oil inventories stood at 362.3 million barrels as of last week.

The report also showed that total motor gasoline inventories decreased by 1.6 million barrels, compared to forecasts for a decline of 0.3 million barrels, while distillate stockpiles rose by 0.3 million barrels.

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