Oil prices are slipping after inventories fall

The data is out, and the price of oil is dropping.

US crude inventories fell by 1.7 million barrels from last week, according to the US Energy Information Administration. The price of futures contracts for West Texas Intermediate fell on the news by about 6.35%. Brent Oil Futures are down 3.0%.

Oil inventories are still on the high end of the typical range for this time in the year, according to the EIA release. The high supply has kept oil prices low, with the commodity slipping nearly 4% so far this year, excluding Wednesday’s drops.

OPEC countries recently announced a higher than expected supply of oil thanks to increased production from Libya and Nigeria.

The number of oil rigs in the US has also been rising for a while, setting a record for the longest run of an increase in oil rigs.

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