Oil futures finished higher on Wednesday, finding support after the International Energy Agency raised its 2022 and 2023 forecasts for oil demand growth. Data from the Energy Information Administration revealed a 10.2 million-barrel weekly rise in U.S. crude inventories. However, analysts said a decline in U.S. Gulf Coast exports due to a temporary disruption at the Houston Ship Channel contributed to the supply increase. Oil prices modestly pared their gains after the Federal Reserve raised its benchmark interest rate by 0.5 percentage point and also penciled in 5.25% as the top end for its benchmark rate. The fear is that the Fed’s restrictive policy stance could ease the demand for oil, and keep prices under wraps, said Phil Flynn, senior market analyst at The Price Futures Group. The U.S. benchmark WTI crude for January delivery CLF23 rose $1.89, or 2.5%, to settle at $77.28 a barrel on the New York Mercantile Exchange, the highest finish since Dec. 2, FactSet data show.
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