Oil prices rise after US inventory data and Middle East developments
Oil prices rose on Wednesday after earlier US crude stocks data and developments in the Middle East.
US President Donald Trump said Iran asked to hold bilateral negotiations in the Middle East, but Tehran denied the statement.
The Energy Information Administration reported a sharp drawdown of 11.5 million barrels in US crude stocks last week to a total of 420.9 million barrels, while analysts only expected a drop of 1.6 million barrels.
Gasoline stocks fell by 0.2 million barrels to 230 million barrels, while distillate stocks rose 0.5 million barrels to 109.4 million barrels.
On trading, Brent August futures rose 0.3%, or 25 cents to $76.70 a barrel.
US crude futures due in July rose 0.40%, or 30 cents to $75.14 a barrel.
Gold reverses lower after Fed's decision
Gold prices fell on Wednesday as the dollar rose against most major rivals following the Federal Reserve’s policy decisions.
The Federal Open Market Committee voted to hold interest rates unchanged at below 4.5% as expected by analysts.
The FOMC expects two 0.25% interest rate cuts by the end of 2025, while reducing expected future cuts in both 2026 and 2027 by once each.
The statement showed persistent uncertainty among Fed officials on the future of interest rates, but overall, the Fed expects rates to reach 3.4% by 2027.
The Fed has adjusted GDP growth in 2025 to 1.4%, while raising inflation forecasts to 3%.
It raised its unemployment estimates by 0.1% to 4.5% this year.
US President Donald Trump once again attacked Fed Chair Jerome Powell and called him stupid for refusing to cut rates, and said interest rates should be lower by 2% at least.
Earlier data showed US unemployment claims fell 5 thousand last week to 245 housand as expected by analysts.
Markets are also analyzing the developing conflict between Iran and Israel and mutual threats, with US President Trump threatening to intervene.
Otherwise, the dollar index rose 0.2% as of 20:11 GMT to 98.9, with a session-high at 99.01, and a low at 98.4.
On trading, gold spot prices fell 0.3% as of 20:12 GMT to $3395.5 an ounce.
US crude socks fall by over 11 million barrels
The Energy Information Administration reported a sharp drawdown of 11.5 million barrels in US crude stocks last week to a total of 420.9 million barrels, whlile analysts only expected a drop of 1.6 million barrels.
Gasoline stocks fell by 0.2 million barrels to 230 million barrels, while distillate stocks rose 0.5 million barrels to 109.4 million barrels.