On Wednesday, crude prices sagged, following a reported increase in American crude inventories and also an estimate that OPEC might have produced more crude in November than thought previously, thus potentially undermining a planned production cut.
American West Texas Intermediate crude futures declined 1.3%, hitting $52.29 a barrel. Besides this, international Brent crude futures sank 1.2%, being worth $55.03 per barrel.
Market participants told that the price declines followed a report of sudden increases in American crude inventories. Markets also monitored an anticipated American interest rate lift, likely backing the evergreen buck and making greenback-traded fuel imports more expensive for countries utilizing other currencies at home.
Crude traders added that prices were further depressed by a gloomy report from the International Energy Agency, according to which Middle East producer club OPEC pumped approximately 34.2 million barrels a day in November, about 500,000 bpd above OPEC’s official estimate.
