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Oil prices higher after inventory data

Published 09/16/2015, 10:35 AM
Crude oil remains stronger as U.S. stockpiles decline
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Investing.com - U.S. oil futures were higher on Wednesday, after data showed that U.S. stockpiles fell unexpectedly last week.

U.S. crude futures for October delivery were last at $45.71 a barrel, from around $45.83 ahead of the report.

On the ICE Futures Exchange in London, the November Brent contract was at $48.91 a barrel from $49.16 earlier.

The U.S. Energy Information Administration said U.S. crude oil stocks fell by 2.104 million barrels last week. Analysts had expected U.S. crude stocks to rise by 1.173 million barrels.

The data came a day after industry group the American Petroleum Institute reported that crude stockpiles fell by 3.1 million barrels last week, compared to expectations for a build.

Global oil production is outstripping demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Traders were also looking ahead to the outcome of the Federal Reserve’s two-day policy setting meeting amid uncertainty over whether the central bank would hike short term interest rates for the first time in almost a decade on Thursday.

An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors.

A stronger dollar could weigh on oil as it would make fuel imports more costly for holders of other currencies.

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