Crude opened higher in Asia today on the back of lower inventory levels and a weakening US Dollar in the aftermath of the Fed’s 75- basis point (bp) rate hike.
On Tuesday, the American Petroleum Institute (API) reported that crude stockpiles fell by 4 million barrels last week.
The drop in stockpiles was then confirmed on Wednesday when the Energy Information Administration (EIA) reported that holdings in the strategic petroleum reserve fell by 4.5 million barrels. This was a larger decrease than expected and takes the reserve down to 422 million barrels
The fall in stockpiles has outweighed concerns of a global slowdown for now. The markets reacted to the Fed hike by selling USD across the board with expectations of a deceleration in the pace and scope of future rate rises.
Fed Chair Jerome Powell said in remarks after the decision that the summary of economic projections (SEP) from June were unchanged. This allayed market concerns of an acceleration in rate hikes.
On Tuesday, the American Petroleum Institute (API) reported that crude stockpiles fell by 4 million barrels last week.
The drop in stockpiles was then confirmed on Wednesday when the Energy Information Administration (EIA) reported that holdings in the strategic petroleum reserve fell by 4.5 million barrels. This was a larger decrease than expected and takes the reserve down to 422 million barrels
The fall in stockpiles has outweighed concerns of a global slowdown for now. The markets reacted to the Fed hike by selling USD across the board with expectations of a deceleration in the pace and scope of future rate rises.
Fed Chair Jerome Powell said in remarks after the decision that the summary of economic projections (SEP) from June were unchanged. This allayed market concerns of an acceleration in rate hikes.