Crude oil futures closed higher overnight (Dec. 15) after U.S. crude oil inventories fell more than expected last week. This indicates that US oil demand remains strong.
- WTI crude futures were up 14 cents, or 0.2%, at $70.87 a barrel.
- BRENT crude futures were up 18 cents, or 0.2%, at $73.88 a barrel.
Both crude futures rose after the EIA released a report last night showing that U.S. crude inventories fell by 4.6 million barrels last week.
Gasoline stocks fell by 700,000 barrels, while refined oil stocks, which include heating oil and diesel, fell by 2.9 million barrels.
The latest news from the Fed let the markets close in the plus yesterday. The Fed left its short-term interest rate unchanged at 0.00-0.25% and announced that it will cut its QE line by $30 billion per month.
However, the announcement made clear that it would stop buying bonds under quantitative easing (QE) in March next year to fight inflation. The reports were in line with market expectations. In the past, there had been talking that the Fed would accelerate the withdrawal of monetary easing measures, which began in March 2020.
The Spot Market is Open
Thursday, December 16, 2021