Crude oil prices fell sharply on Wednesday amid concerns about economic growth, outlook for energy demand, and on data showing an increase in gasoline inventories.
The Federal Reserve's decision to raise interest rate by 25 basis points weighed as well on oil prices.
West Texas Intermediate Crude oil futures for June ended down $3.06 or about 4.3% at $68.60 a barrel, the lowest settlement since March 24.
Brent crude futures ended lower by $2.99 or about 4% at $72.33 a barrel, the lowest close since December 2021.
Data released by Energy Information Administration (EIA) showed crude inventories dropped by 1.3 million barrels last week, as against forecasts for a 1.1 million drop.
The data showed gasoline inventories rose by 1.7 million barrels last week, larger than an expected drop of 1.2 million barrels.
Data released by the American Petroleum Institute on Tuesday showed crude oil inventories in the U.S. falling by 3.94 million barrels in the week ended April 28, higher than market expectations of a 1 million decline. Inventories had fallen by 6.1 million barrels in the previous week.
Following the Fed's rate hike move, the European Central Bank is also likely to raise interest rate by 25 basis points.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2211478/
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