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Crude oil at 7-month high; racing towards US$ 50 a bbl

Crude oil at 7-month high; racing towards US$ 50 a bbl

The global oil supply is expected to cut by nearly 4 million barrels per day this month. Data shows that US crude oil inventories have fallen by 5.1 million barrels to 536.80 million barrels.

On the back of a sharp fall in the US inventories, and expectations of a cut in supply due to a wildfire in Alberta, Canada and spate of violence in Nigeria's oil-producing region, the crude oil price surged to a 7-month high on Wednesday.

The global oil supply is expected to cut by nearly 4 million barrels per day this month. Data shows that US crude oil inventories have fallen by 5.1 million barrels to 536.80 million barrels.

Today, the WTI crude oil was quoted as high as US$ 49.45 a bbl - a seven high level since October 9, 2015 when it was quoted at US$ 49.36 per barrel. It hit a 30-year low of US$ 26.21 on February 11 this year.

The Energy Information Administration (EIA), which is expected to release the weekly estimate soon, hinted that crude oil production in the US has fallen from a peak of 9.7 million barrels a day last year to below 9 million barrels in recent weeks.

WTI crude was last seen above US$ 50 a barrel on July 21 when it traded at US$ 50.15 per barrel.

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