Crude oil rises after EIA report

Crude oil rises after EIA report

oiloilCrude oil resumed its advance for a second straight session on Wednesday after the EIA report showed U.S. crude oil inventories rose less than forecast last week.

U.S. crude inventories increased 1.9 million barrels in the week through April 24, after rising 5.3 million barrels a week before to record 489 million, the highest level since 1930. This came lower than analysts’ forecast of 2.1 million barrels increase.

In fact, the drop in drilling rigs in the U.S. has indicated a possible decline in the U.S. oil-production capacity in the coming period.

Data released on Wednesday showed that the U.S. economy posted an annualized meagre growth of 0.2 percent in the first quarter, compared to 2.2 percent in the previous three months and 1.0 percent predicted by analysts.

Later in the day, eyes will focus on comments about the timing of an interest hike and the health of the economy.

Crude oil futures for June delivery set a new high of $58.17 a barrel, compared to the session’s low of $56.53.

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Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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