Oil prices steadied on Wednesday as industry data showed an unexpected draw in U.S. crude oil inventories, after the market tumbled in the previous session on fears that more aggressive U.S. interest rate hikes would hit demand.
Brent crude futures rose 18 cents, or 0.2%, to $83.47 per barrel by 0452 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 4 cents to $77.62 a barrel.
Data from the American Petroleum Institute showed U.S. crude inventories fell by about 3.8 million barrels in the week ended March 3, according to market sources. The drawdown defied forecasts for a 400,000 barrel rise in crude stocks from nine analysts polled by Reuters.
However, near-term drivers pointed towards a more bearish outlook as investors braced for steeper U.S. rate hikes.
“Fed Chair Powell’s comments on ‘higher for longer’ rates spooked markets and sent risk assets, including commodities, sharply down overnight.
The short rebound in oil prices today may be due to profit-taking as nothing has changed fundamentally,” said Tina Teng, an analyst at CMC Markets.
This report’s information was first seen on REUTERS; to read more, click this link.
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