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Oil steadies as rich supply meets sturdy demand
On Tuesday, crude markets steadied, underpinned by firm demand, though suppressed by high supplies from OPEC as well as producers in the United States.
Benchmark Brent crude slid 10 cents trading at $48.32 a barrel. As for American light crude futures, they lost 10 cents being worth $45.92.
In a sign of firm demand, Monday’s data demonstrated that in June refineries in China stepped up crude throughput to the second highest on record.
However, many markets happen to be well supplied and crude for prompt delivery is actually trading at decent discounts to forward futures. Therefore, crude prices are trading at approximately half the levels observed three years ago.
In spite of the fact many OPEC countries have limited output, others including Libya and Nigeria have been permitted to lift output.
By the way, on Tuesday, a small producer within OPEC, Ecuador told it wasn’t dropping its output by 26,000 bpd as agreed because of the country's fiscal deficit, expected to reach 7.5% of gross domestic product in 2017.
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