Oil price rises despite inventory increase

U.S. crude oil futures price rose on Wednesday, despite a surprising gain in inventories.


U.S. commercial oil stocks added 4.8 million to 340.6 million barrels last week, mostly attributable to a jump in imports, according to the Energy Information Administration's weekly report on Wednesday.


However, the Federal Reserve announced it would continue its 600-billion-dollar quantitative easing policy, which helped snap the oil price's six-session losing streak.


In a statement following its policy-setting meeting, the Fed said the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions.


Also, the Fed said the inflation was "somewhat low," giving it another reason to continue its stimulus plan.


Meanwhile, the dollar index slipped to near 77.80 on Wednesday, which also helped the dollar-denominated oil price to surge.


Light, sweet crude for March delivery rose 1.14 dollars to 87. 33 dollars a barrel on the New York Mercantile Exchange.
(Source:http://news.xinhuanet.com)