Oil Rises 2 Percent After Lower Inventories

Oil rose more than 2 percent on Wednesday after an unexpected drawdown in U.S. stockpiles, an increase in U.S. gasoline prices, and on the back of rising global markets.

But concerns remained about a global surplus, falling Asian demand and whether the U.S. Federal Reserve would raise interest rates.

The Labor Department said on Wednesday its consumer price index fell 0.1 percent last month, the first decline since January, pointing to tame inflation that complicates the Fed’s decision whether to raise rates.

U.S. crude futures strengthened after the American Petroleum Institute (API) reported a 3.1-million-barrel drop in crude inventories last week, versus analyst expectations for an increase.

via Reuters

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