Crude oil futures rebounded on Wednesday from a five-year low after U.S. oil inventories fell, albeit less than forecast.
Oil prices bounced back after the Energy Information Administration (EIA) reported a lower-than-forecast fall in crude oil supplies in the U.S. in the week-ended December 12.
On Tuesday, data from the American Petroleum Institute (API) said that crude oil inventories edged higher last week, and it seems that the EIA’s reported decline stoke some buying.
Oil prices had traded as low as $54.21 a barrel earlier, but then jumped nearly 5% before settling 1% higher at $56.47 per barrel.
February Brent crude oil rose 1.9% to $61.18 a barrel, having earlier fell to a five-year low.
The rise could have also been due to an increase in new buy orders after both contracts touched lows earlier this week.
The more-than-expectedly dovish Federal Reserve statement did not affect oil prices that much.
Also, Fed Chairman Janet Yellen added that oil’s decline was fairly positive for the U.S. economy.
Gold
Gold prices wavered between gains and losses on Wednesday, falling back after topping the $1,200 level after the Federal Reserve’s statement.
Gold futures for February delivery were last down 0.49% at $1,188.60 per ounce.
Some markets saw the Fed’s statement as a bit more dovish than anticipated, while some read it as negative news. The Federal Reserve had changed its prior language, but its policy was still the same, and it is still on track to increase rates.
Gold and oil prices were also held back by a stronger dollar, which gained against most major rivals.