Oil Rises as US Stockpiles Drop and Exports Climb to a Record
- Crude inventories fell 4.52 million barrels last week
- Fed rose interest rates by 75 bps, meeting market expectations
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Oil rose after a government report showed demand for US crude rising globally amid a supply crunch and traders shrugged off the Federal Reserve’s decision to raise interest rates by 75 basis points.
West Texas Intermediate rose 2.4% to settle at $97.26 a barrel, while gasoline futures climbed 2.2%. US crude stockpiles dropped the most since the end of May, falling by 4.52 million barrels last week, according to the Energy Information Administration. Adding to bullish sentiment, crude exports rose to a record as the spread between US- and London-traded futures widened with Europe scrambling to replace Russian barrels.