Oil is trading lower today after price skyrocketed yesterday as talks between western diplomats and officials from Iran are extended over the set deadline. If the talks will reach an agreement over Iran's atomic program could result in an end of the embargo which would add to the global supply glut.
Yesterday's data on U.S. Crude oil Inventories showed that inventories rose by 4.766 million barrels in the week ended March 27 - less than the build-up reported by the API a day earlier. U.S. output shrank for the first time since December. The number of active drilling rigs reach the lowest count since 4 years.
Brent Crude lost -0.75% currently trading at USD56.67 a barrel. On January 13th Crude set a low at USD45.19. West Texas Intermediate dropped -0.94% currently quoted at USD49.62.
Oil prices declined sharply in recent months as worldwide supply exceeds demand in a period of low global economic growth, pushing stockpiles to record highs and weighing on prices.