WASHINGTON (dpa-AFX) - Oil futures settled notably higher on Thursday as traders weighed the potential impact of Donald Trump's presidency on the geopolitical scene, on an interest rate cut announcement by the Federal Reserve.
Oil prices were also supported by the OPEC+'s decision to delay output increase plans by a month, and a weaker dollar.
The dollar index dropped to a low of 104.19 before recovering to 104.51, but still remained well below the flat line, losing about 0.55%.
The Federal Reserve today cut interest rate by 25 basis points. The central bank said its decision to continue lowering rates comes as labor market conditions have generally eased, while inflation continues to make progress towards its 2% objective.
However, the Fed said the risks to achieving its dual goals of maximum employment and inflation at the rate of 2% over the longer run are roughly in balance.
Recent data showing an increase in crude inventories in the U.S. last week capped oil's upside.
West Texas Intermediate Crude oil futures for December closed up $0.67 or about 0.93% at $72.36 a barrel.
Brent crude futures were up $0.60 or about 0.8% at $75.52 a barrel a little while ago.
Data released by the Energy Information Administration (EIA) on Wednesday showed crude oil inventories climbed by 2.1 million barrels last week, after edging down by 0.5 million barrels in the previous week. Economists had expected crude oil inventories to rise by 1.8 million barrels.
The EIA said gasoline inventories also edged up by 0.4 million barrels last week, while distillate fuel inventories, which include heating oil and diesel, also increased by 2.9 million barrels.
Investors also followed the movement of Hurricane Rafael. According to the U.S. Bureau of Safety and Environmental Enforcement, over 22% of crude oil production and 9% of natural gas output in the U.S. Gulf of Mexico was shut in response to Hurricane Rafael.
Energy producers had shut in 391,214 barrels per day of oil production and nearly 181 million cubic feet of natural gas from Gulf waters, the bureau said.
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