Oil Rises 2 Percent After Lower Inventories

Oil rose more than 2 percent on Wednesday after an unexpected drawdown in U.S. stockpiles, an increase in U.S. gasoline prices, and on the back of rising global markets.

But concerns remained about a global surplus, falling Asian demand and whether the U.S. Federal Reserve would raise interest rates.

The Labor Department said on Wednesday its consumer price index fell 0.1 percent last month, the first decline since January, pointing to tame inflation that complicates the Fed’s decision whether to raise rates.

U.S. crude futures strengthened after the American Petroleum Institute (API) reported a 3.1-million-barrel drop in crude inventories last week, versus analyst expectations for an increase.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza