Oil Drops $2.5, 3-Week Low, US Stocks Close After Fed Raises Rates by 0.25%

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Oil Drops $2.5, 3-Week Low, US Stocks Close After Fed Raises Rates by 0.25%

Oil prices edged lower on ​SLOTXO Wednesday (Feb. 1), with the US contract at a three-week low as petroleum reserves rose for a sixth week in a row, suggesting weak demand. Wall Street closed higher. Amidst the volatility of trading after the Fed raised interest rates by 0.25% as expected

West Texas Crude Oil Contract Intermedia or Light Sweet Scratch March delivery was down $2.46 to settle at $76.41 a barrel. Brent North Sea Side London March delivery was down $2.62 to settle at $82.84 a barrel.

The US Energy Information Administration (EIA) released a report on Wednesday showing the nation's crude inventories rose 4.1 million barrels in the week ended January 27, after five weeks of gains. That's more than analysts had expected for an increase of around 300,000 barrels.

In the EIA report, it is stated that Gasoline inventories rose 2.6 million barrels in the same week and distillate inventories rose 2.3 million barrels, while analysts expected gasoline inventories to remain stable. and distillate inventories will drop by 1.3 million barrels.

The US stock market on Wednesday (Feb. 1) closed amid volatile trading. After the US Federal Reserve (Fed) raised interest rates by 0.25% and is expected to continue to raise interest rates to combat inflation.

The Dow was up 6.92 points (0.02 percent) to close at 34,092.96, S&P was up 42.61 points (1.05 percent) to close at 4,119.21, and the Nasdaq was up 231.77 points (2.00 percent) to close at 11,816.32.

The Federal Open Market Committee (FOMC) unanimously voted to raise the short-term interest rate by 0.25% to a range of 4.50-4.75% at its meeting on Wednesday (Feb. 1). It hit the highest level since October 2007.