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19 Sep 2013
Oil rises after Fed keeps its foot on the gas, inventories down
FXstreet.com (London) - WTI has been driven to one-week highs on the back of yesterday’s announcement that the US Federal Reserve would not be going ahead with expected plans to taper its monthly asset purchases. This was combined with reports that US inventories had fallen faster than expected.
News that the Federal Reserve would not be taking its foot off the gas with its ultra-loose monetary policy aimed at stimulating the economy of the US, the world’s largest oil consumer, rallied oil prices. WTI October contracts currently stand at USD107.70/barrel, having hit highs of USD108.99.
November Brent prices currently stand at USD109.79/barrel, after hitting highs of USD111.26.
The spread between US WTI contracts and European Brent has declined to USD2.27, a six-week low.
According to data released by the Energy Information Administration, US crude inventories have slid to 355.6 million. The seasonally adjusted annual fall of 4.368m barrels was a sharp increase on -0.219m in the preceding month. Analysts had expected inventories to fall -1.394m.
The squeeze on US supplies has tightened the WTI-Brent spread, which had preciously traded at a USD19 premium on Syrian tensions combined with US oversupply.
News that the Federal Reserve would not be taking its foot off the gas with its ultra-loose monetary policy aimed at stimulating the economy of the US, the world’s largest oil consumer, rallied oil prices. WTI October contracts currently stand at USD107.70/barrel, having hit highs of USD108.99.
November Brent prices currently stand at USD109.79/barrel, after hitting highs of USD111.26.
The spread between US WTI contracts and European Brent has declined to USD2.27, a six-week low.
According to data released by the Energy Information Administration, US crude inventories have slid to 355.6 million. The seasonally adjusted annual fall of 4.368m barrels was a sharp increase on -0.219m in the preceding month. Analysts had expected inventories to fall -1.394m.
The squeeze on US supplies has tightened the WTI-Brent spread, which had preciously traded at a USD19 premium on Syrian tensions combined with US oversupply.