U.S. crude oil settled lower Wednesday, after the Energy Information Administration's weekly oil report showed a better-than-expected increase in U.S. crude stockpiles last week. The decline in prices comes despite some upbeat economic outlook from Federal Reserve with the central bank announcing the continuation of its quantitative easing program unchanged.
The Energy Information Administration's oil report showed U.S. commercial crude oil inventories to have increased 0.3 million barrels to 394.1 million barrels for the week ended June 14. This is above the upper limit of the average range for this time of year. Analysts expected crude oil inventories to decline by 1 million barrels.
Total motor gasoline inventories rose 0.2 million barrels last week, which is also above the upper limit of the average range.
Light Sweet Crude Oil futures for July delivery, the most actively traded contract, shed $0.20 or 0.2 percent to close at $98.24 a barrel on the New York Mercantile Exchange Wednesday.
Crude prices for July delivery scaled a high of $98.61 a barrel intraday and a low of $97.41.
Yesterday, crude oil settled lower after having trended higher for most of the day amid supply concerns, with some news reports on the Federal Reserve would likely cut back on its quantitative easing program.
The U.S. Federal Reserve exuded optimism in its economic outlook for the country after its two-day policy meet. The Fed said it would maintain the pace of its $85 billion a month bond buying program, without giving any explicit indication of tapering the monetary stimulus soon. The Fed also held its its benchmark interest rate at effectively zero.
Despite mounting evidence of a robust recovery in the housing market, the Fed will wait for a significant drop in unemployment before scaling back its controversial asset purchase program. Policy makers did, however, note some improvement in the overall condition of the economy.
The dollar trended higher against some major currencies and the euro soon after the Federal Reserve revealed its monetary policy with an upbeat outlook for the economy.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.27 on Wednesday, up from 80.69 late Tuesday in North American trade. The dollar scaled a high of 81.28 intraday and a low of 80.50.
The euro traded lower against the dollar at $1.3283 on Wednesday, as compared to $1.3393 late Tuesday in North America. The euro scaled a high of $1.3415 intraday and a low of $1.3284.
In economic news, eurozone construction output increased in April, reversing the decline in March, data from Eurostat revealed Wednesday. Production in construction rose 2 percent month-on-month in April following a 1.8 percent drop in March and a 1.3 percent increase in February. Compared with April 2012, production decreased 6.6 percent. This followed a 7.3 percent year-on-year decline in March.
Spain's merchandise trade shortfall decreased significantly from last year in April as exports increased at a notably faster rate than imports, data from the country's Commerce Ministry showed Wednesday. The net trade for April resulted in a deficit of 1.64 billion euros, which was 51.1 percent lower than in the same month last year.
Elsewhere, Portugal's producer price inflation quickened moderately in May after easing in the previous month, data released by Statistics Portugal showed Wednesday. The producer price index increased 0.8 percent year-on-year in May, following the previous month's 0.5 percent gain. In March, the index recorded a 1.4 percent growth.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.