Oil prices rise after inventory data, before Fed rate call

27th April 2011, Comments 0 comments

Crude prices rose Wednesday as traders digested a weekly snapshot of energy inventories in the United States, the world's biggest oil consumer, and before the Federal Reserve's rate decision.

Markets were also looking ahead to US growth data on Thursday.

Brent North Sea crude for delivery in June climbed $1.10 to $125.24 in late London deals.

New York's main futures contract, light sweet crude for June, gained 66 cents $112.87 a barrel.

The US Department of Energy on Wednesday said US crude inventories rose by far more than expected in the week ending April 22, adding that stockpiles of motor fuel dropped.

Crude stocks jumped by 6.2 million barrels, while analysts had forecast a rise of only 900,000 according to a poll by Dow Jones Newswires.

Later in the day, the US Federal Reserve announces its latest monetary policy decisions.

Bank policymakers are widely expected to maintain ultra-low interest rates in a bid to support a US economy that has been plagued by high unemployment.

Unrest in the north Africa and the Middle East meanwhile continued to rattle the oil market as traders worried about the potential for further supply losses.


© 2011 AFP

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