Oil Prices Rise as Federal Reserve Keeps Stimulus Efforts in Place

by Tim Bonett, KPI Bridge Oil
Wednesday September 18, 2013

Oil prices recovered from their drops from the last two days and rose on news that the Federal Reserve would keep its stimulus efforts in place and U.S. crude inventories dropped to their lowest levels in approximately 18 months.

This morning's EIA inventory report showed that crude stockpiles dropped by 4.4 million barrels last week, surprising many analysts and investors who were expecting a drop of about 1.2 million barrels.

The report helped to extend the gains WTI was already seeing in early trading.

Later in the day, the Federal Open Market Committee said that it will continue its bond-buying program at the current pace.

The news came as a surprise, as many have been anticipating that the central bank will reduce its buying rate beginning this month.

WTI rose $2.65 to settle at $108.07/bbl, while Brent jumped $2.41 to settle at $110.60/bbl. Bunker prices were firm in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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