On Wednesday the cost of oil was up 4%. US oil reserve reports have pushed traders into closing short positions and purchasing oil futures. Brent has risen to 50 USD per barrel, with WTI up to 47.93 USD.
According to EIA data, US oil reserves last week were down by 2.1 million barrels against a forecasted rise of 1.173 million barrels. US oil extraction has fallen by 18,000 barrels to 9.117 million barrels.
Brent at 11:13 EET was going for 49.64 USD and WTI was being sold for 47.31. In Europe quotes were down slightly before the FOMC decision is made public.
Market participants have been selling the USD, expecting the Fed to leave rates unchanged. We’ll find out what the situation is at 21:00 EET. If the Fed leaves its rates at 0.00-0.25%, oil will head northbound to 31st August’s maximum of 54.32 due to the US dollar weakening.