Oil prices fall more than 1% as market softens on rising inventories

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Oil prices have fallen 8% since April highs, but Morgan Stanley sees a tighter market heading into summer driving season.

ENSCO-72 drilling rig working in Poole Bay for Corallian Energy in Poole Bay, England, on Feb. 15, 2019.Crude oil futures fell more than 1% on Wednesday as the market softens on rising inventories, though prices could firm later this year as demand increases during the summer driving season.

"Oil market indicators have turned softer in recent weeks, and prices have declined from recent peaks," Morgan Stanley analysts said in a Wednesday note. "The oil market is not tight now, but we see seasonal strength ahead in coming months." U.S. oil inventory data is due out later this morning. Stockpiles surged in the last week of April, putting pressure on prices.Oil prices have fallen 8% since April highs when traders bid up prices on fears that Iran and Israel would go to war. Investors have largely sold off the war premium since then, with Morgan Stanley removing $4 per barrel of risk from its oil price forecast for the year.

In the Middle East, CIA Director William Burns is due in Israel to discuss the latest Gaza cease-fire negotiations in Cairo, a source familiar with the matter told NBC News.This solar stock is poised for 50% upside as demand strengthens on data center surge, Goldman says

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