Moneycontrol
Dec 17, 2015 08:00 AM IST | Source: Reuters

Crude rises after US fed rate hike, gains limited

West Texas Intermediate for January delivery CLF6, the front-month contract, rose 17 cents to USD 35.69 a barrel by 0100 GMT after finishing settled down nearly 5 percent on Wednesday.

Crude rises after US fed rate hike, gains limited

Crude futures rose in Asian trade on Thursday recouping some of the losses from the previous session, when they fell sharply after the Federal Reserve raised rates and official figures showed a surprise build in US inventories.


West Texas Intermediate for January delivery CLF6, the front-month contract, rose 17 cents to USD 35.69 a barrel by 0100 GMT after finishing settled down nearly 5 percent on Wednesday.


Brent crude for February delivery LCOc1, the front-month contract from Thursday was up 17 cents at USD 37.56. The global benchmark fell USD 1.34 to USD 37.39 the previous session.


US crude stocks increased last week as imports into the Gulf Coast rose, data from the Energy Information Administration (EIA) showed on Wednesday, surprising analysts who expected inventories to decline.


The EIA data showed crude inventories rose 4.8 million barrels last week to near record highs, while analysts in a Reuters poll had forecast a drop of 1.4 million barrels.


Adding to the overall bearish global picture, OPEC producers see scant chance of a significant rise oil prices in 2016 as extra Iranian production could add to the ongoing glut and the prospect of voluntary output restraint remains remote.


The US Fed hiked interest rates for the first time in nearly a decade on Wednesday, a sign it believes that the US economy had largely overcome the calamity that was the 2007-2009 financial crisis.


Higher US rates typically support the dollar, making oil and other commodities denominated in the greenback more expensive, undermining demand.

X
Sections
Follow us on
Available On