(RTTNews) - The price of crude oil was extending gains Wednesday morning after a last night report revealed unexpected drop in U.S. crude supplies that increased hopes for demand growth. Iran's threats to cut supply and Tuesday's bombings in Nigeria also helped lift oil prices.
Light Sweet Crude Oil (WTI) futures for March delivery, were up $0.93 to $99.34 a barrel. Yesterday, oil leveled off from its 2-month low to settle above $98 as the U.S dollar turned weak after Federal Reserve Chairman Ben Bernanke assured that the central bank intends to keep interest rates near zero despite January's strong jobs report.
Tuesday after the market hours, the API said U.S crude oil inventories fell 4.5 million barrels, while gasoline stocks rose 4.4 million barrels in the weekended February 03.
This morning, the U.S. dollar slipped back near a 2-month low versus the euro and a 3-month low against sterling. The buck was moving higher versus the yen and trading flat against the Swiss franc.
In economic news, Germany's trade surplus decreased more than expected by economists in December as exports dropped, data from the Federal Statistical Office showed. The trade surplus declined to EUR 12.9 billion in December from EUR 15.9 in November. Economists had forecast a decline to EUR 13.7 billion.
Today during trading hours, the EIA will release its report on U.S. crude oil inventories for the weekended February 03.
