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Oil extends gains after large drop in US inventories
Oil prices rose on Wednesday, and managed to extend gains, after the US crude inventories data showed the largest weekly drop since December 2019.
Markets are focused on the US Federal Reserve's interest rate decision, amid expectations to keep it unchanged.
The US production rose 100,000 barrels to 11.1 million barrels per day during the past week, which is the first weekly increase in a month.
The Energy Information Administration (EIA) showed today that the US crude inventories fell by about 10.6 million barrels during the past week, beating forecasts of drop by 1.2 million.
As of 17:17 GMT, West Texas Intermediate crude rose 0.4% to $41.2 a barrel, after it hit an intraday high of $41.5 and a low of $40.9.
Brent rose 0.9% to $43.6 a barrel, with a high of $43.9 and a low of $43.2.
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The US Federal Reserve kept the interest rate unchanged between zero and 0.25%, in a widely expected move, and ruled out any rate hike before the the recovery of the economy and the labor market in addition to inflation.
MoreUS crude inventories fall over 10 million barrels
The US Energy Information Administration (EIA) showed today that the US crude inventories fell 10.6 million barrels to reach a total of 526 million barrels during the past week, beating forecasts of a drop by 1.2 million barrels.
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The major US stock benchmarks rose on Wednesday, as investors await the Federal Reserve to reveal its interest rate decision later today.
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