Investing.com - U.S. oil futures rose to the highest levels of the session on Wednesday, after government data showed that U.S. oil supplies fell more-than-expected last week.
Investors also awaited the outcome of the Federal Reserve's policy meeting later in the day amid ongoing speculation over whether the central bank will announce any reduction to its stimulus program.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in February traded at USD98.06 a barrel during U.S. morning trade, up 0.6%. Nymex oil prices traded at USD98.12 a barrel prior to the release of the supply data.
New York-traded oil futures held in a range between USD97.31 a barrel and USD98.26 a barrel, the highest level since December 11.
Nymex oil futures were likely to find support at USD96.53 a barrel, the low from December 16 and resistance at USD98.74 a barrel, the high from December 11. The February contract ended down 0.31% on Tuesday to settle at USD97.47 a barrel.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 2.9 million barrels in the week ended December 13, compared to expectations for a decline of 2.3 million barrels.
Total U.S. crude oil inventories stood at 372.3 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 1.3 million barrels, compared to expectations for a gain of 1.9 million barrels.
U.S. oil prices received an additional boost after the Census Bureau said U.S. housing starts rose to 1.09 million units last month, from 0.89 million in October, compared to expectations for an increase to 0.95 million units.
Building permits in the U.S. fell 3.1% to 1.01 million units in November, from 1.04 million units the previous month. Analysts had expected building permits to drop 4.7% last month to 0.99 million units.
Investors remained wary ahead of the outcome of the Fed’s final policy meeting of the year, with some expecting the central bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
However, many believe that policymakers will wait until early next year to start rolling back stimulus, despite recent indications the U.S. economic recovery is deepening.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery inched up 0.15% to trade at USD108.62 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD10.56 a barrel.
Investors also awaited the outcome of the Federal Reserve's policy meeting later in the day amid ongoing speculation over whether the central bank will announce any reduction to its stimulus program.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in February traded at USD98.06 a barrel during U.S. morning trade, up 0.6%. Nymex oil prices traded at USD98.12 a barrel prior to the release of the supply data.
New York-traded oil futures held in a range between USD97.31 a barrel and USD98.26 a barrel, the highest level since December 11.
Nymex oil futures were likely to find support at USD96.53 a barrel, the low from December 16 and resistance at USD98.74 a barrel, the high from December 11. The February contract ended down 0.31% on Tuesday to settle at USD97.47 a barrel.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 2.9 million barrels in the week ended December 13, compared to expectations for a decline of 2.3 million barrels.
Total U.S. crude oil inventories stood at 372.3 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 1.3 million barrels, compared to expectations for a gain of 1.9 million barrels.
U.S. oil prices received an additional boost after the Census Bureau said U.S. housing starts rose to 1.09 million units last month, from 0.89 million in October, compared to expectations for an increase to 0.95 million units.
Building permits in the U.S. fell 3.1% to 1.01 million units in November, from 1.04 million units the previous month. Analysts had expected building permits to drop 4.7% last month to 0.99 million units.
Investors remained wary ahead of the outcome of the Fed’s final policy meeting of the year, with some expecting the central bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
However, many believe that policymakers will wait until early next year to start rolling back stimulus, despite recent indications the U.S. economic recovery is deepening.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery inched up 0.15% to trade at USD108.62 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD10.56 a barrel.