Crude prices improved on Wednesday as data exposed decreases in energy inventories in the U.S., which is the world’s biggest consumer of oil. This helps to comfort market interests regarding a supply glut.
On the New York Mercantile Exchange (NYMEX), a barrel of WTI crude for delivery bumped up $2.46 to $47.05 compared with Tuesday’s close.
For the late London transactions, Brent North Sea crude for its November delivery went from $49.79 a barrel on the Intercontinental Exchange (ICE), to an increase of $2.04.
US Department of Energy stated commercial crude stockpiles fell by almost 2.1 million barrels in the previous week.
Oil prices have gained the support ahead of the data after private industry group American Petroleom Institute analyzed a drop in inventories.
A decision on Thursday of the US Federal Reserve for an interest rate increase was brought to the attention of traders.
Analysts are anticipating a rate hike to happen this month while others are predicting it to happen on December.
Interest is sharp in the oil market of the Fed’s decision because an increase in the benchmark federall funds rate from zero, where it has been set since 2008. This could also bump the greenback, making pricing of crude oil more expensive in other currencies.