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Crude Oil Pushes Lower Ahead of Supply Data - report

Crude oil futures fell on Wednesday, adding to losses from earlier in the week, on expectations that key supply data due later will show higher inventories, MarketWatch reported.

Crude-oil futures for January delivery fell 57 cents, or 0.7%, to US$86.60 a barrel.

Oil prices on Tuesday fell 56 cents, or 0.6%, to settle at $87.18 a barrel on the New York Mercantile Exchange, as renewed worries about a global recession triggered concerns about demand for the commodity.

"We are just extending losses from earlier this week on downbeat sentiment since the Greek deal was largely priced in, geopolitical tensions eased a little and attention is back on fundamentals," said Andrey Kryuchenkov, analyst at VTB Capital, in emailed remarks.

Kryuchenkov said oil is also taking small losses ahead of the U.S. Energy Information Administration report due later on Wednesday. He said that report should show inventory builds across the board, pointing to the American Petroleum Institute report that was released the prior day.

API data showed Tuesday that crude-oil supplies rose 2 million barrels for the week ended Nov. 23. Distillate stocks rose by 268,000 barrels and gasoline inventories rose 2.3 million barrels last week.

Analysts polled by Platts expect the EIA report to show a 500,000-barrel rise in crude-oil supplies, a rise of 1 million barrels in gasoline inventories and a fall of 150,000 barrels in distillate supplies

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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