Crude stays flat, strong USD restricts gains

FXStreet (Mumbai) – Crude prices at both sides of the Atlantic are trading flat amid strong USD and larger than expected inventory drawdown in the US.

US stockpiles decline more than expected

The Energy Information Administration (EIA) data on Wednesday show crude stockpiles fell by 4.2 million barrels in the week to July 24, more than twenty times analysts’ expectations of a decrease of 184,000 barrels.

The drawdown strengthened the outlook for oil demand. However, gains are being capped by the strength in the US dollar after the FOMC, provided a jobs clue that a rate hike is getting closer.

Brent Crude for September delivery currently trades 0.42% or 24 cents higher at USD 53.62/barrel. WTI Crude trades largely unchanged around USD 48.81/barrel.

Crude prices at both sides of the Atlantic are trading flat amid strong USD and larger than expected inventory drawdown in the US.

(Market News Provided by FXstreet)