West Texas Oil near One Week High at 98.50 as Stockpiles Decline

West Texas Intermediate traded near the highest price in a week after crude stockpiles declined in the U.S. and the Federal Reserve said it will reduce stimulus as the nation’s economic outlook improves.

Futures were little changed in New York, after rising 0.6 percent yesterday, while Brent advanced as much as 0.7 percent in London. U.S. crude inventories shrank by 2.94 million barrels in the seven days ended Dec. 13, falling for a third week, according to data yesterday from the Energy Information Administration. The Fed is trimming its monthly bond purchases to $75 billion from $85 billion, starting in January, amid greater job-market prospects, Chairman Ben S. Bernanke said.

“Oil prices went up yesterday on growth optimism,” said Bjarne Schieldrop, chief commodity analyst at SEB AB in Oslo. “We’re continuing to see solid implied crude demand in the U.S. The message from the Fed is that of course they will not go cold turkey on the U.S. economic recovery.”

Bloomberg

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