Investing.com - Crude oil futures traded higher Wednesday as the FOMC issued pro growth statements despite Iran considering eliminating nuclear expansion easing supply worries.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD104.28 a barrel during U.S. afternoon trade, climbing 0.68%.
The Federal Open Market Committee stated that it expects economic growth to remain moderate over the coming quarters and then to pick up gradually, increasing demand hopes for the commodity.
In addition, the Fed boosted its outlook for growth and is slightly more optimistic on employment adding to the bullish sentiment
Crude inventories rose 3.98 million barrels to 373 million last week, hitting a 11 month higher and weighing on prices.
The report was expected to show that U.S. crude oil stockpiles rose by 2.8 million barrels last week to the highest level since May, underscoring fears over a slowdown in oil demand from the U.S.
In Iranian news, a Russian plan for the Islamic nation would require Iran to stop building machines to enrich uranium to weapons grade in exchange for the euro zone not banning its oil imports.
The Iranian envoy in Moscow has reported it is considering the Russian plan.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Wall Street investment bank Goldman Sachs said in a report Tuesday that oil prices will rise as demand is expanding faster than production capacity even as the global economy slows.
Goldman reiterated a recommendation to buy September futures for West Texas Intermediate oil.
Oil prices ended higher on Tuesday as investors were relieved when a successful auction sent yields on Dutch debt lower, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However gains were limited after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery jumped higher 0.47% to trade at 118.72 a barrel, with the spread between the Brent and crude contracts standing at USD14.44.
Brent prices were supported by supply disruption fears stemming from a production stoppage at the North Sea Buzzard oil field, Britain's largest.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD104.28 a barrel during U.S. afternoon trade, climbing 0.68%.
The Federal Open Market Committee stated that it expects economic growth to remain moderate over the coming quarters and then to pick up gradually, increasing demand hopes for the commodity.
In addition, the Fed boosted its outlook for growth and is slightly more optimistic on employment adding to the bullish sentiment
Crude inventories rose 3.98 million barrels to 373 million last week, hitting a 11 month higher and weighing on prices.
The report was expected to show that U.S. crude oil stockpiles rose by 2.8 million barrels last week to the highest level since May, underscoring fears over a slowdown in oil demand from the U.S.
In Iranian news, a Russian plan for the Islamic nation would require Iran to stop building machines to enrich uranium to weapons grade in exchange for the euro zone not banning its oil imports.
The Iranian envoy in Moscow has reported it is considering the Russian plan.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Wall Street investment bank Goldman Sachs said in a report Tuesday that oil prices will rise as demand is expanding faster than production capacity even as the global economy slows.
Goldman reiterated a recommendation to buy September futures for West Texas Intermediate oil.
Oil prices ended higher on Tuesday as investors were relieved when a successful auction sent yields on Dutch debt lower, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However gains were limited after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery jumped higher 0.47% to trade at 118.72 a barrel, with the spread between the Brent and crude contracts standing at USD14.44.
Brent prices were supported by supply disruption fears stemming from a production stoppage at the North Sea Buzzard oil field, Britain's largest.