January 5, 2017 6:22 PM

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Crude oil steadies on fall in US inventories

Global crude oil prices steadied, today, as a fall in U.S. crude inventories balanced doubts that producers will cut output as promised to reduce global oversupply. Brent crude oil futures was down 15 cents, at 56.31 dollars a barrel. U.S. crude was down 10 cents, at 53.16 dollars a barrel. OPEC and other key producers have agreed to reduce output to try to drain a worldwide glut. But some investors suspect OPEC may not cut production as much as it has promised. U.S. bank Goldman Sachs said that even if OPEC reduced production as promised, there was only moderate oil spot price upside given the expected supply response to higher oil prices and new production. The U.S. bank said it expected Brent prices to peak at 59 dollars a barrel by mid-2017.

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