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NYMEX crude oil higher in Asia As API shows stocks drop

Published 12/17/2013, 07:53 PM
Updated 12/17/2013, 07:54 PM
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Investing.com - Oil prices rose in Asia on Wednesday as the market awaited the outcome of the Federal Reserve policy meeting.

On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD97.58 a barrel, up 0.11%, after hitting an overnight session low of USD97.27 and a high of USD98.15. The February contract settled up 0.87% at USD97.77 a barrel on Monday.

Late Tuesday, The American Petroleum Institute, an industry trade group, said its own data showed that crude stocks fell by 2.5 million barrels last week. Investors were also awaiting the release of official oil and refined products inventories by the EIA on Wednesday as well.

Many investors remained in standby mode ahead of the Fed's Wednesday announcement on monetary policy as well as the fate of stimulus programs such as monthly bond purchases, which have supported oil for over a year by softening the dollar.

Lackluster inflation data released earlier gave investors little indication as to whether the Fed will taper asset purchases now or in 2014.

The Department of Labor reported earlier that the U.S. consumer price index came in flat in November after falling 0.1% in October. Analysts were calling for a 0.1% uptick.

The annual rate of inflation rose 1.2% in November, just shy of expectations for 1.3% reading but still up from a four-year low of 1.0% in October.

U.S. core inflation, stripped of volatile food and energy items, rose 0.2% in November from October, beating expectations for a 0.1% gain, while the year-on-year rate for November rose 1.7%, which met consensus forecasts.

On The ICE Futures Exchange Brent crude for February delivery fell 0.9%, to USD108.44 a barrel.

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