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Shrinking Stockpiles Boost Oil With Gains Capped By Fed Warning

  • U.S. crude supplies fell for a second straight week: EIA
  • Crude’s rally held back amid selloff in U.S. equities
Pipeline pipe
Photographer: Daniel Acker/Bloomberg
Updated on

Oil rose after a government report showed U.S. distillate stockpiles declined the most since March but gains were limited by renewed concerns over the speed of the economic recovery from the pandemic.

Futures in New York increased 0.3% on Wednesday after earlier swinging between gains and losses. The market drew support from an Energy Information Administration report showing declines in U.S. crude and refined product inventories, but futures were held back from a stronger rally as equities slid. The S&P 500 Index fell as much as 2.4% after Federal Reserve Chairman Jerome Powell reiterated his view that there’s a long way to go for the economic rebound.