Oil Prices Stable in Early Session After Overnight Surge - Oil prices steady move in early trading on Thursday after a big drop in US crude inventories, while traders are still awaiting the results of the Federal Reserve's decision on whether they will tonight Raise interest rates the first time in almost a decade.
Higher US interest rates is likely to attract more money from currency traders, increasing the dollar exchange rate. Strengthening of the dollar can be bearish for oil denominated in the greenback as commodity prices will be more expensive for importers holding other currencies.
Oil prices jumped by 6% on Wednesday, when data from the US Energy Information showed a large drop in US crude stocks in the past seven months in the main delivery point in Cushing, Oklahoma.
WTI oil price is currently trading at $ 46.97 a barrel at 09:53 pm, the price is not much different from its closing level in the previous session. Brent oil prices also are flat at $ 49.77 per barrel.
Analysts of one of the banks in Australia say that the price of WTI oil rose to the highest level this month after the EIA reported a decline of 2.1 million barrels in oil reserves last week as refinery operating rate of rise for the first time since July. US refineries typically will slow output during September for a period of treatment.
