Brent crude trades below $60 a barrel after EIA report

Brent crude oil traded below $60 a barrel on Wednesday after Energy Information Administration said U.S. crude stocks rose more than forecasts last week.

The EIA report showed that the U.S. build crude stocks of 10.3 million barrels the previous week from 8.4 million barrels a week earlier. Analysts had expected a drop to 4.0 million barrels.  

The U.S. dollar, on the other hand, rose to 11-year high against a basket of major currencies after U.S. ISM non-manufacturing data surpassed analysts’ forecasts.   

The services sector in the United States saw a widening expansion in February to 57.1 from 54.2 in January, above economists’ forecast of 56.5.

The dollar index hit a peak of 96.06, while currently hovers around 95.97.  

As of 08:30 p.m. GMT, Brent crude for April delivery traded around $59.60 a barrel, where the lowest level in the session was recorded at $59.46.

U.S. crude oil snapped three days of advance to retreat to $49.79 a barrel after opening today’s trades at $50.60.

Later in the day, the U.S. will release its Beige Book, which helps policymakers, as it is release two weeks before the Fed’s rate decision.