The Energy Information Administration reported a surprising buildup of 2.9 million barrels in US crude stocks last week to 443.7 million barrels, while analysts expected a drop of 2.3 million barrels.

Gasoline stocks rose 2.7 million barrels to 226.7 million barrels, while distillate stocks rose 1.5 million barrels to 115 million barrels. 

Most US stock indices gained ground on Wednesday, building on recent gains which sent Dow Jones to incredible highs.

The Federal Reserve decided on Wednesday to hold interest rates flat at below 5.5%, the highest in 22 years.

Fed Chair Jerome Powell said that inflation has tapered off but remains above targets. 

The Fed now expects three interest rate cuts in 2024, more than previously expected. 

Richmond Fed President Thomas Parkin expects the Fed to cut interest rates if inflation continued to decline towards the 2% target. 

Now investors await a batch of important US data later this week, including core consumer spending data, the preferred inflation gauge by the Fed. 

On trading, Dow Jones rose 0.2%, or 65 points as of 17:42 GMT to 37,622, as S&P 500 rose 0.1%, or 6 points to 4774, as NASDAQ rose 0.3%, or 50 points to 15,053. 

Nickel prices declined on Wednesday as the dollar gained ground against most major rivals ahead of 2023.

Traders continue to monitor dollar's movements as traders sell the greenback on bets the Federal Reserve will cut interest rates in early 2024. 

At the London Metals Exchange, aluminium prices rose 0.2% to $2267 a tonne, while nickel fell 0.3% to $16,700, as zinc fell 0.4% to $2572, as lead shed 0.2% to $2068, while tin fell 0.4% to $25045. 

In Asian trade, aluminium rose 0.1% to 18,945 yuan a tonne, while zinc rose 1% to 21,055 yuan a tonne, as lead fell 0.2%. 

Otherwise, the dollar index rose 0.2% to 102.3 as of 17:25 GMT, with a session-high at 102.4, and a low at 102.1. 

Nickel spot prices fell 0.1% as of 17:37 GMT to $16.43 thousand a tonne. 

Global oil prices rose in European trade on Wednesday on track for the sixth straight profit, hitting a two-week high with US crude trading above $75, while Brent edged up to $80. 

The gains come amid concerns about global supply disruptions as geopolitical tensions in the Middle East grow with Houthis attacks on ships in the Red Sea. 

Prices were boosted after the Energy Information Administration in the US announced plans to purchase fresh crude supplies to fill strategic reserves.

Global Oil Prices 

US crude rose 1.3% to $75.01 a barrel, the highest since Decemebr 1, while Brent added 1.2% to $80.25 a barrel. 

US crude surged 1.8% on Tuesday, while Brent added 1.7%, the fifth profit in a row. 

Rea Sea Tensions 

The US launched an international coalition to protect global trade in the Red Sea from Houthi attacks, which forcerd several major navigation companies to reroute around Africa. 

Iran-backed Houthis vowed to continue targeting ships in the Red Sea in support of the Hamas Islamic group in Gaza. 

Nearly 12% of global trade shipments move through the Red Sea and the Suez Canal, however the impact on oil supplies remain limited. 

Strategic Reserves 

The US governments announced a purchase of 2.1 million barrels of crude to be delivered in February, raising total government purchases so far to 11 million barrels to fill up strategic reserves. 

US Stocks 

Initial data from the American Petroleum Institute showed a buildup in US crude stocks by 0.94 million barrels last week, while analysts expected a drop of 1.9 million barrels. 

Now traders await the official EIA later today on US crude stocks and production.