Oil Prices Settle Higher On Inventory Drop, No Fed Rate Hike

By Wallace WitkowskiMarketsMarketWatch Pulse

Oil prices settled higher Wednesday following a third week of surprise U.S. inventory drops and the decision by the Federal Reserve not to raise interest rates. Oil for November delivery settled up $1.29, or 2.9%, at $45.34 a barrel. On Wednesday, the U.S. Energy Information Administration reported a 6.2 million barrel decline in weekly crude inventories, while the Fed decided against a September rate hike. Following the Fed decision, the dollar declined, and was last down 0.3% on the day.

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