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April 27, 2016

Oil prices pull back as traders secure profits

Crude oil prices have dropped after traders locked-in profits following April's earlier rises.

By Srivani Venna

Crude

Crude oil prices have dropped after traders locked-in profits following April’s earlier rises.

International Brent crude futures were down 27 cents and traded at $46.91 per barrel, while the US West Texas Intermediate (WTI) futures slipped 20 cents at $45.13, Reuters reported.

Traders said that high crude storage figures could have spurred some investors to take profits by closing long positions.

US Energy Information Administration’s (EIA) data highlighted a fall in crude oil production to 8.94 million barrels per day last week.

"The recent trend of rising crude oil prices received another boost after US output was shown to have fallen again."

ANZ bank told the news agency: "The recent trend of rising crude oil prices received another boost after US output was shown to have fallen again last week."

The Federal Reserve said that that the US interest rates would be left unchanged.

Jefferies said that the market is expected to remain oversupplied in the near term and also warned that global spare capacity is estimated around two million barrels per day, or 2% of demand.

Some traders say that the market had run up too much and expect crude prices to further decline in coming days.


Image: High crude storage figures could have spurred some investors to take profits by closing long positions. Photo: courtesy of anankkml/ FreeDigitalPhotos.net.

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