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Crude Oil Nudges Higher As Inventories Slide

Crude oil futures rose Wednesday after the government said energy inventories fell much more than forecast.

Crude inventories dropped 4.1 million barrels in the week to June 8, compared with analysts' expectations for a decrease of 2.7 million barrels. Gasoline stocks fell 2.3 million barrels.

U.S. crude oil production is expected to rise by less than previously expected to 11.76 million barrels per day (bbl/d) next year, the EIA said yesterday.

July WTI oil climbed by 28 cents, or 0.4%, to settle at $66.64/bbl.

The Federal Reserve raised its key interest rate by a quarter point to 2%, as expected.

In a surprise move, the central bank now projects four interest rate hikes in 2018, rather than three. The Fed also dropped wording about rates being 'below levels" in the long run.

The vote was 8-0.

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