The price of oil increased by 6% on Wednesday letting traders gain a bit of profit while the market scenario has changed with this increase. Brent oil is show to by down by 38 cents ending trading at 48.80. Crude oil, on the other hand, was trading at 45.71. The US crude oil prices upward movement as the US government announced a stocking on inventory that reversed the position of oil trading to a better one. Oil trading experienced a straight 3 days of losses prior to this increase in prices. A report from the US Energy Information Administration reported last Wednesday said that crude stocks were high. Other inventories and gasoline decreased in terms of pile up were also mentioned in the report.
The US Energy Information Administration or EIA announced that there has been 3.4 million barrels stockpiled last week. An inventory decrease of 785,000 barrels was also seen at the Cushing, Oklahoma depot. Cushing is where US crude stocks are delivered.
In the Asian market, prices of oil tumbled down as expectations for the Fed Reserve report on interest rates were eagerly awaited. Earlier in the week, there were speculations of an interest rate hike which allowed a boost with USD FOREX rates.
The Federal Reserve report also declared that a rate hike can be expected by December when world’s top economy shows improvement and a more stable economic structure would have been achieved.