Oil Crawls Forward as Tighter Supply Offsets Projected Fed Hike
- The U.S. dollar jumped, reducing appeal of commodities
- Erased earlier gains after data on crude inventories build
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Oil was virtually unchanged as gains driven by diminishing crude inventories were tugged lower after Federal Reserve officials suggested they expect two interest rate increases by the end of 2023.
Futures in New York rose three cents on Wednesday. Equities fell and the dollar surged, reducing the appeal of commodities priced in the currency. Earlier, oil rose as much as 1.2% after a U.S. government report showed domestic crude supplies tumbled last week and inventories at the nation’s biggest supply hub in Oklahoma dropped to the lowest since March 2020.