Oil gains ground on Wednesday ahead of a busy US trading session.
US API stockpiles data showed a bigger-than-expected decline in inventories.
The US Dollar Index trades comfortably above 105.00 ahead of US CPI and the Fed’s rate decision.
Oil prices are sprinting higher on Wednesday, touching the highest level since May 30, supported by a larger-than-expected decrease in US inventories. Data from the American Petroleum Institute (API) showed on Tuesday that crude stockpiles declined by 2.428 million barrels in the week ending June 7, well above the 1.75 drawdown expected and swinging from a 4.052 million buildup a week earlier. The Energy Information Administration (EIA) will release its own numbers later this Wednesday, with analysts predicting also a decline in Oil stockpiles.
Meanwhile, the US Dollar Index (DXY) is trading above 105.00 as the dust settles after the political turmoil in Europe, particularly in France, following the results of the parliament elections. Traders are focused on the US data, with the US Consumer Price Index (CPI) numbers ahead of the US opening bell as the main event. This will be followed by the interest-rate decision from the US Federal Reserve (Fed). Although no change in the policy rate is expected, the dot plot projections and the speech from Fed Chairman Jerome Powell could send the DXY in any direction.
At the time of writing, Crude Oil (WTI) trades at $78.28 and Brent Crude at $82.36
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