Crude oil rallied more than 4 U.S. dollars to above 67 dollars a barrel on Wednesday as a rate cut by the U.S. central bank outweighed a build-up in crude stockpiles.
Light, sweet crude for December delivery surged to as high as 68.91 dollars a barrel before retreating to settle at 67.50 dollars a barrel, trading up 4.77 dollars or more than 7 percent, on the New York Mercantile Exchange (NYMEX).
The rally of the oil prices started in the Tuesday after-session trading as major stock indexes in the United States ended sharply higher, boosting investors' confidence in the turnaround of the economic conditions.
The bullish oil continued on Wednesday. Prices got strong support and stood at around 66.50 dollars a barrel even after the U.S. Energy Department weekly report revealed an increase in crude supply and a sharp drop in the gasoline inventory.
NYMEX crude futures shot higher after the Federal Reserve decided to lower its benchmark interest rate by half a point to 1 percent. Investors were expecting the rate cut would help to revive fuel consumption.
A weaker dollar, which fell sharply against the euro and other major currencies on Wednesday, also contributed to the rise of the oil prices.
In London, Brent crude for December delivery jumped 6.13 dollars to 66.42 dollars a barrel on the ICE Futures Exchange.
Source: Xinhua
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