The crude oil prices remained weak in Asian trade on Wednesday, after US data showed higher than expected growth in reserves. This reinforced the bearish market sentiment. The US light WTI crude oil price decrease by 0.84% to 46.28 USD per barrel and the price of European Brent oil fell by 0.56% to 47.87 USD per barrel.
On Tuesday, the American Petroleum Institute announced that US inventory reserves rose by 9.3 million barrels in the week ending on October 28 (Week 43), which was well above market expectations. The reserves of gasoline declined by 3.6 million barrels, distilled from these products recorded a decline of 3.1 million barrels. In the storage in Cushing, Oklahoma, which is considered a hub for WTI, the reserves in Week 43 grew by 1 million barrels.
The preliminary agreement in OPEC to lower the US reserves continued to be the focus of the market participants. The member countries of the cartel are expected to agree the details of a possible agreement at the meeting on November 30 in Vienna. More intensified speculation that a deal might not be reached, as countries including Iraq, Iran, Nigeria and Libya, may not participate. The position of Russia, which is not a member of OPEC, is not completely clear.
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