WASHINGTON (dpa-AFX) - Oil futures closed higher on Wednesday despite data showing an increase in crude inventories in the U.S. in the week ended March 14th. However, amid continued uncertainty about growth due to the impact of U.S. tariffs on some of its major trading partners and the threat of more levies, limited oil's upside.
Worries about global growth and Russia's announcement of a 30-day halt in attacks on Ukraine energy targets weighed on oil prices.
Russian President Vladimir Putin has ordered a 30-day pause on strikes on Ukraine's energy sites but insists peace depends on the 'complete cessation' of Western military and intelligence aid.
Global ratings agency Fitch has lowered its global growth forecast and warned that U.S. President Donald Trump's reciprocal tariffs will push up inflation and delay Fed rate cuts.
The Federal Reserve, which left its policy rates unchanged today, noted 'uncertainty around the economic outlook has increased,' and said it is 'attentive to the risks to both sides of its dual mandate.'
With regard to the outlook for rates, Fed officials still forecast rates in a range of 3.75 to 4% by the end of the year.
The forecast was unchanged from last December and suggests the Fed is likely to cut rates by a quarter point two times later this year.
West Texas Intermediate Crude oil futures for April closed higher by $0.26 or about 0.39% at $67.16 a barrel.
Brent crude futures settled at $70.78 a barrel, gaining $0.22 or 0.31%.
Data released by the Energy Information Administration showed crude oil inventories in the U.S. increased by more than expected last week, climbing by 1.7 million barrels, after rising by 1.4 million barrels a weak earlier. Economists had expected crude oil inventories to grow by 1.2 million barrels.
At 437.0 million barrels, U.S. crude oil inventories remain about 5% below the five-year average for this time of year, the EIA said.
Meanwhile, the EIA said gasoline inventories dipped by 0.5 million barrels last week but are 2% above the five-year average for this time of year.
Distillate fuel inventories, which include heating oil and diesel, also fell by 2.8 million barrels last week and are about 6% below the five-year average for this time of year, the report said.
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