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  • NEWS Desk Global

OIL PRICES CLIMB 2% ON SMALL BUILD IN US CRUDE STOCKS, FED RATE CUT SEEN




Oil prices climbed around 2% on Wednesday, buoyed by a smaller-than-expected increase in U.S. crude inventories and significant withdrawals from distillate and gasoline stockpiles. Comments from the U.S. Federal Reserve chief indicating expectations of interest rate cuts this year also contributed to the price rally. Brent futures rose by $1.34, or 1.6%, reaching $83.38 per barrel by 12:09 p.m. EST (1709 GMT), while U.S. crude increased by $1.70, or 2.2%, reaching $79.85 per barrel. This upward movement put Brent on track for its first daily rise in five sessions.

The U.S. Energy Information Administration (EIA) reported that energy firms added a smaller-than-expected 1.4 million barrels of crude into stockpiles during the week ending March 1. Additionally, distillate and gasoline inventories saw more significant declines than anticipated. Specifically, energy firms withdrew 4.1 million barrels from distillate stockpiles, which include diesel and heating oil, and 4.5 million barrels from gasoline stockpiles. These figures surpassed analysts' forecasts for much smaller weekly withdrawals, signaling robust demand in these segments.

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