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Oil prices fell early on Wednesday after IPY reported a surge in US crude on Tuesday surpassing new bullish signs of the coup attempt in Venezuela and Saudi Arabia hinting that the OPEC + deal could be extended in one form or another until the end of the year.
At 8:58 am EDT Wednesday, prior to EIA's weekly inventory report, WTI crude oil was down 0.75% to $ 63.43, while Brent crude oil was down 0.75% to $ 63.43, while Brent crude oil was down by 0.75% to $ 63.43, while Brent crude oil was down by 0.75% to $ 63.43. traded from 0.33% to $ 71.82.
Saudi Energy Minister Khalid al-Falih said Tuesday in an interview with the Russian news agency RIA Novosti that the OPEC production reduction agreement + could be extended by the end of the year from the date of its expiration in June 2019. Falih, however, reiterated that it was too early to project details on the levels. production and quotas.
Also Tuesday, oil prices were supported by the escalating situation in Venezuela, OPEC member, where the opposition leader, Juan Guaidó, as well as some factions of the 39, army, organized an attempt to overthrow Nicolas Maduro.
These two bullish factors were eliminated Tuesday in the day when the American Petroleum Institute (API) announced a surprise increase in crude oil inventories of 6.81 million barrels for the week ending April 26th, surpassing analysts' expectations of an index of 2.093. accumulation of millions of barrels in stocks.
"The larger-than-expected increase in stocks weighed on the market, which saw the reversal of most of the gains recorded yesterday following the Saudi Oil Minister's statement that OPEC + could continue its expansion. contract until the end of the year, while the market has largely ignored the growing unrest in Venezuela, "said Warren Patterson, head of commodity strategy at ING, said Wednesday.
Referring to Venezuela, ING believes that "a regime change could result in an increase in oil production in the long run, it could also cause short and medium term disruptions, while we believe that 39, it will not be quick to turn the tide.The national oil industry around even with a new regime. "
By Tsvetana Paraskova for Oilprice.com
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