Oil Drops Ahead of US Crude Inventories

Oil prices plunged more than 3 percent on Wednesday, ending the longest bullish streak in five years, as more evidence indicated OPEC exports rose last month.

U.S. West Texas Intermediate crude futures fell $1.69, or 3.6 percent, to $45.38 per barrel at 12:23 p.m. ET, erasing much of the previous two sessions’ gains.

International benchmark Brent crude futures slumped $1.50, or 3 percent, to trade at $48.11 per barrel.

WTI prices rose nearly 11 percent from a 10-month closing low over the course of eight sessions, the contract’s longest winning streak since 2012.

Bearish sentiment crept back into the market after data from Thomson Reuters Oil Research showed OPEC’s exports rose in June. This was despite the producer group reaching an agreement in May to extend a deal to keep 1.8 million barrels a day off the market in order to shrink global supplies and end a three-year glut.

OPEC exported 25.92 million barrels per day in June, up 450,000 bpd from May and 1.9 million bpd more than a year earlier.

via CNBC

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