WASHINGTON (dpa-AFX) - Crude oil prices rose sharply on Wednesday as data showed a sharp drop in U.S. crude stockpiles in the week ended June 23rd.
The dollar's rise on upbeat economic data, and Fed Chair Jerome Powell's remarks about interest rates capped oil's gains.
Powell said during a panel discussion at the European Central Bank Forum on Central Banking in Sintra, Portugal, that he expects additional interest rate hikes in the months ahead and added that raising rates at consecutive meetings is not off the table.
West Texas Intermediate Crude oil futures for August ended higher by $1.86 or about 2.8% at $69.56 a barrel.
Brent crude futures were up $1.52 or 2.1% at $74.03 a barrel a little while ago.
Data released by the Energy Information Administration (EIA) this morning showed U.S. crude inventories dropped by 9.603 million barrels last week, more than 5 times the expected drop.
The EIA data also showed gasoline inventory increased by 0.603 million barrels last week, as against forecasts for a drop of 0.126 million barrels. Meanwhile, distillate stockpiles rose 0.124 million barrels last week.
New orders for key manufactured capital goods unexpectedly rose in May, sales of new single-family homes surged in the month and a measure of U.S. consumer confidence surged to a near 1-1/2 year high in June, separate reports showed on Tuesday - helping ease concerns about an impending recession.
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