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Crude Bounce Back From Two-Month Low

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Crude prices were seen trading higher on Wednesday, rebounding from the lowest price since May as crude stockpiles in the US fell.

Futures for the US benchmark West Texas Intermediate (WTI) for August delivery climbed 0.47% to $100.43 a barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude for August settlement rose 0.11% to $107.01 a barrel on the ICE Futures Europe Exchange based in London.

Janet Yellen Comments
On Tuesday, the Federal Reserve Chair Janet Yellen appeared before the Senate Banking Committee to speak on the world’s largest economy and the central bank’s stimulus.

Yellen said the jobs sector and price stability remains among the main targets and would play a key role on whether to increase interest rates. Yellen’s testimony pushed the greenback higher against a basket of its major peers, which weighed on oil prices.

China
A report from the National Bureau of statistics (NBS) showed that the gross domestic product (GDP) for China grew for the first time in three quarters to 7.5% in the June quarter, compared to analysts’ estimates of 7.4%.

China is expected to account for 11% of the global oil demand this year, while the US is forecasted to account for 21%, according to the International Energy Agency in Paris.

Oil Production
Libya, a member of the Organization of Petroleum Exporting countries (OPEC); is expected increase shipments from the Es Sider and Ras Lanuf oil terminals which were handed over to the government last week by rebels. Production from the Sharara field has risen to 554,000 barrels a day, according to the Wall street Journal.

Crude Inventories
Crude supplies in Cushing, Oklahoma declined by 944,000 barrels, a report from the American Petroleum Institute showed.

The Energy Information Administration (EIA) is expected to release a report on US crude inventories, with analysts forecasting a fall to 379.8 million barrels in the week ending July 11.

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