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    'Massive supplies' force oil markets lower

    Pressure on oil markets has caused widespread losses in recent days. 

    Oil markets are set to record a week of losses today (24 March 2016), as the latest US inventories data and a strengthening for the greenback have caused a widespread downturn.
    Official US government figures revealed that crude stockpiles had grown by 9.4 million barrels in the last seven days - an increase that was almost three times the amount forecast by analysts in the run-up to the data's release.

    Furthermore, hawkish comments coming out of the US Federal Reserve also served to improve the safe haven nature of the US dollar in forex markets, which in turn has placed increasing pressure on oil markets.

    Analyst at the New York Energy Management Institute Dominick Chirichella told Reuters: "A dose of reality [has] derailed the current perception [of a] rally, at least for the time being."
    By the late afternoon in European market sessions (3.47 pm GMT), the impact of ongoing pressures on the sector had caused a widespread downturn in fortunes.

    US light crude values had diminished by $0.95 per barrel to stand at $38.84 by this time, while Brent crude values had fallen by a similarly harsh $0.51 per barrel to $39.96.

    This latest collapse means oil values have now dipped below $40 per barrel - a situation that investors had hoped to see avoided given the dramatic losses that typified much of the sector's trading performance in the year to date.

    File under: CFD, Crude, Oil, ThinkForex, Trading, WTI

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