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Oil price rally stalls in data anticipation

Key crude indices up by double-digit percentages in April.

By Daniel J. Graeber

NEW YORK, April 21 (UPI) -- A brief rally in crude oil prices stalled Tuesday, with major indices treading water ahead of the release of key market data later this week.

The price for Brent, the global benchmark, and West Texas Intermediate, the U.S. standard, have been on a steady rise for most of April, increasing more than 10 percent since the start of the month.

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Separate reports from the Organization of Exporting Countries and the International Energy Agency last week estimated global oil demand should increase as the worldwide economy gains traction. Markets have favored the supply side in large part because of increased U.S. crude oil production, though a weakened market has slowed some of that trajectory.

Brent for May delivery was down a fraction of a percent in early Tuesday trading to fetch $63.14 per barrel. WTI was relatively flat at $56.32.

The American Petroleum Institute publishes industry market data late Tuesday, while the U.S. Energy Information Administration rolls out a federal report Wednesday.

EIA in its annual report, published earlier this month, said domestic crude oil production peaks at 10.6 million barrels per day in 2020 and then fades to 9.4 million bpd by 2040. The full-year average production for 2015 is forecast at 9.2 million bpd.

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The increase in crude oil prices has lead to a corresponding rise in retail gasoline prices for U.S. consumers. Motor club AAA said in a weekly status report the national average price for a gallon of regular unleaded is up 3 percent from last week to $2.46 per gallon.

"Global oil prices continue to reflect volatility and industry stakeholders remain divided over where supply and demand fundamentals will send prices," the motor club said.

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