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Business & Finance

Oil Prices Rise on Weaker Dollar, after U.S. Crude Stock Draw

Crude Oil
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Oil prices climbed Thursday, building on the previous day’s gains following a bigger-than-forecast fall in US stockpiles, and a plunge in the dollar after the Federal Reserve kept interest rates on hold.

A pump jack stands idle in Dewitt County, Texas January 13, 2016.

Refineries operated at 92 percent of capacity, processing 16.6 million barrels of crude and producing 10.1 million barrels of gasoline daily, a bit more than in the previous week.

LONDON, Sept 22 (Reuters) – Oil rose for a second day on Thursday as a weaker dollar and a surprisingly large drop in USA crude inventories emboldened investors ahead of next week’s meeting between OPEC members and Russian Federation to discuss supply. Distillate stockpiles, which include diesel and heating oil, rose by 2.2 million barrels, versus expectations for a 250,000-barrel increase.

 

Oil prices climbed yesterday, supported by a reported draw in U.S. crude inventories and by firm import data from Japan.

At the time of writing, WTI was trading up 2.68 percent at US$45.23 per barrel, after yesterday closing up 0.32 percent at US.44, and Brent was up 2.2 percent at US$46.89, up from yesterday’s settlement of US.88.

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The U.S. Energy Information Administration (EIA) on Wednesday reported a 6.2 million barrel drop in crude oil inventories last week, the second biggest drop in a year.

Global benchmark Brent crude oil futures were trading at $46.46 per barrel, up 58 cents, or 1.26 %, from their last close.

A weaker dollar.DXY after the Federal Reserve left U.S. interest rates unchanged also supported oil prices as it makes dollar-traded fuel imports cheaper for countries using other currencies. Brent was lifted by an oil workers’ strike in Norway, which threatened to cut North Sea crude output.

Fundamentals suggest the oil market is likely to remain in surplus for longer than many expected”, Dutch ING bank said, citing lower Chinese oil purchases and uncertainty around the global economy as factors weighing on markets.

 


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