Oil Climbs Above $45 Amid U.S. Crude Output Drop, Fed Statement
- U.S. crude output slipped to 8.94 million barrels a day: EIA
- Inventories top 540 million barrels for first time since 1929
Demand, Fundaments and the Oil Market Comeback
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Oil closed above $45 a barrel in New York for the first time since November after U.S. crude output dropped and Federal Reserve policy makers signaled they’re open to raising interest rates in June.
Crude production fell to 8.94 million barrels a day last week, the least since October 2014, Energy Information Administration data show. Futures fell on the initial release of the report because it showed crude inventories rose. Oil extended gains after the Federal Open Market Committee omitted previous language that “global economic and financial developments continue to pose risks,” instead saying officials will “closely monitor” such developments.