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Oil prices drop in the U.S.

Oil prices fell for a second day to their lowest in a week on a surprise build in U.S. crude inventories. Another concern is the increase in COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer.Brent futures fell $1.30, or 2.0%, to $65.27 a barrel, while U.S. West Texas Intermediate crude for June settled 2.11%, or $1.32, lower at $61.35 per barrel.

This male both benchmarks are on track for their lowest closes since April 13.Louise Dickson, oil markets analyst at Rystad Energy said that the Oil prices are declining today as the bearish developments forced traders to ignore a partial but bullish Libyan force majeure on exports. She also added to the build of U.S. crude inventories and a continuous rise of COVID-19 infections in India and other countries.

India, the world’s third-largest oil user, on Wednesday reported another record increase in the daily death toll from COVID-19. Crude inventories rose by 594,000 barrels in the week to April 16 to 493 million barrels, compared with analysts’ expectations in a Reuters poll for a 3 million barrel drop. U.S. East Coast inventories, fell to a record low at 7.9 million barrels.

The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, are heading for a largely technical meeting with major changes to the policy are unlikely, Russian Deputy Prime Minister Alexander Novak and OPEC+.The National Oil Corp of Libya declared force majeure on exports from the port of Hariga and said it could extend the measure to other facilities due to a budget dispute with the country’s central bank.

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