Prices of oil decline due to larger-than-expected rise in U.S. inventory

Thursday, prices of oil declined right after official data indicated a massive rise in U.S. crude inventories as well as an abrupt increase in gasoline stocks. The international benchmark, Brent crude futures, settled at $64.57 per barrel after losing 16 cents. The United States West Texas Intermediate closed at $61.53 per barrel –  11 cents lower from its previous close.

According to data showed by EIA, U.S. crude inventories were up by 3 million barrels last week, which was exceedingly higher than the 2.1 million barrel increase forecasted by analysts. There was also a surprise increase in gasoline inventories. Data indicated that gasoline stocks rose by 2.5 million barrels against anticipations of a 190,000 barrel drop.

U.S. dollar kept stable on Jerome Powell’s testimony

The U.S. dollar held firm against its major currency rivals on Thursday. According to the dollar index, the greenback climbed to a five-week high of 90.746. This positive stance of the dollar was due to Jerome Powell’s claims according to which the Federal Reserve was going to raise interest rates four times this year.

As to other currencies, the British pound slid against the greenback, settling at $1.3746. This was the pound’s lowest point since mid-January. The euro traded at 0.88625 which was almost 1% higher than its nadir of 0.8772 capped on Monday. Against the Japanese safe-haven yen, the dollar settled at ¥106.635.

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