Oil Prices Are Rising On US Market Data

Crude Oil Prices Rising

Crude oil prices in the US neared $50 per barrel on Wednesday after new data showed the U.S. market was starting to tighten with falling supply and lower inventories following two years of heavy surplus.

U.S. crude stocks decreased by 1.2 million barrels last week while distillate stockpiles also fell according to data from the American Petroleum Institute (API) showed.

The biggest decrease appears to be from U.S. shale producers who were likely cutting back on production to deal with falling oil prices over the last 16 months.

Benchmark Brent crude has dropped to about $50 from a high of $115 a barrel in June 2014.

Brent was up 90 cents a barrel at $52.82 after jumping by $3 on Tuesday to close above $50 for the first time in a month.

U.S. light crude rose $1.18 a barrel to a high of $49.71 before easing back to trade around $49.60.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at OnlineDegree.com.