News Daily Spot: Oil prices fell 3% on Wednesday to its lowest level since August

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Oil prices fell 3% on Wednesday to its lowest level since August

Oil drops 3 pct least two and half months due to increased inventories in USA.- Oil prices fell 3 percent on Wednesday to its lowest level since August, due to the fear that government figures show an increase Crude inventories for the seventh consecutive week. 

Oil was also pressured by concerns that Iraq add more supply to the market which would intensify the struggle within OPEC for market share. 

Crude stocks in the United States rose sharply last week driven by an increase in Cushing, and an increase in imports offset increased production in refineries, data showed on Tuesday from the American Petroleum Institute (API). 

Analysts polled by Reuters had expected a much smaller increase, close to 1 million barrels. 

The government's Energy Information Administration (EIA) will release its report on the state of oil stocks on Thursday, a day later than usual before the holiday Veterans Day in the United States. 

Separately, Reuters data showed shipments to tankers with almost 20 million barrels of Iraqi crude will go to the United States in November, almost 40 percent more than recorded for arrival in October. Iraq is the second largest OPEC producer. 

 The Brent crude fell $ 1.63, or 3.4 percent, to $ 45.81, while US crude lost $ 1.28, or 3 percent, to $ 42.93 . 

In another sign of oversupply, a bottleneck of some 40 oil tankers on the coast of Texas has occurred this month.

 Fears that the world's largest producers, such as Saudi Arabia and Russia, are pumping at record rates also weighed on the market.

Ecuador, part of OPEC, said Wednesday that the only way to balance the market is reducing the production and seeks to reach agreement at the meeting to hold the producer group in December.

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