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Oil rises following API report

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Investing.com - Oil futures traded higher during Wednesday's Asian session following the release of weekly inventories data from the American Petroleum Institute.

On the New York Mercantile Exchange, light, sweet crude futures for August delivery jumped 0.67% to USD104.22 per barrel in Asian trading Wednesday after settling up 0.17% at USD103.32 a barrel on Tuesday in the U.S.

Earlier Wednesday, the American Petroleum Institute said U.S. oil inventories fell by 9 million barrels last week, well above the decline of 3.8 million barrels analysts expected.

Oil rose despite a tepid outlook for global growth from the International Monetary Fund. On Tuesday, IMF cut its 2013 global growth forecast to 3.1% from a 3.3% prediction made in April and cut its 2014 growth forecast to 3.8% from 4.0%, which sent investors snapping up safe-haven positions in the dollar.

Ongoing turmoil in Egypt also helped boost oil. Egypt's interim government worked to amend the country's constitution and also set parliamentary and presidential elections for early 2014 though fears unrest my affect the flow of oil through the Suez Canal sent prices climbing.

Violent clashes between supporters and opponents of ousted President Mohamed Morsi left more than dozens of people dead, according to various reports. Egypt is not a net oil exporter though it is North Africa's largest economy.

Later Wednesday, the Federal Reserve will release the minutes of its June monetary policy meeting, which investors hope will provide more insight into the fate of stimulus measures that have boosted commodities prices in recent years.

Also later Wednesday, the U.S. Energy Department releases its weekly inventories report, which is more widely followed than the API data.

Elsewhere, Brent crude for August delivery inched down 0.05% to USD107.82 per barrel on the ICE Futures Exchange.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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