Oil Spikes On Falling Inventories – Cautiousness Caps Gains
Sep, 21st 17:09
Oil prices rose nearly 2 percent on Wednesday following an unexpected drop in weekly crude stockpiles data reported by the U.S. government. The Report by the U.S. Energy Information Administration (EIA) showed domestic crude inventories fell by 6.2 million barrels for a third week in a row last week.
However, some investors expressed concerns over the data from the EIA. The EIA data also reported that U.S. crude imports rose last week by 77,000 barrels per day, while refinery runs fell by 143,000 barrels per day. This indicates a buildup in crude oil stocks as refineries lag behind in processing the crude oil imported.
As a U.S dollar-dominated commodity, crude resumed its nervous moves after a spike to a one week high ahead of the FOMC decision due later.
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