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MTECHTIPS:- U.S. crude falls to fresh six-year low, amid unexpected inventory build

MTECHTIPS:- U.S. crude falls to fresh six-year low, amid unexpected inventory build

U.S. crude futures plunged to fresh six-and-a-half year lows before paring some losses in the afternoon session, following the strongest build in U.S. crude inventories in four months. On the New York Mercantile Exchange, WTI crude for October delivery traded in a broad range between $40.97 and $43.17 a barrel, before settling at $41.23, down 1.89 or 4.37% on the session. Over the last month, Texas Long Sweet futures have declined by more than 21%, amid a continued glut of oversupply on global markets. On the Intercontinental Exchange (ICE), brent crude for October delivery wavered between $46.83 and $49.10 a barrel, before closing at 47.10, down 1.71 or 3.50% on the day. The spread between the international and U.S. benchmarks of crude, meanwhile, stood at 5.87, above Tuesday’s level of 5.72 at the close. On Wednesday morning, the U.S. Energy Information (EIA) said in its Weekly Petroleum Status Report that U.S. crude stockpiles increased by 2.6 million for the week ending on August 14, marking its highest weekly build since April. At 456.2 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years. Total motor gasoline inventories decreased by 2.7 million barrels last week, and are in the middle of the average range, the EIA said in a report. At the Cushing Oil Hub in Oklahoma, the main delivery point for NYMEX crude oil, inventories increased by 300,000 barrels for the week.

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