Nov 5, 2009
Crude prices settled above 80 U.S. dollars a barrel on Wednesday as crude inventories dropped and the dollar weakened against a basket of currencies.
Light, sweet crude for December delivery rose 80 cents, or 1.0 percent, to settle at 80.40 dollars a barrel on the New York Mercantile Exchange.
According to the U.S. Energy Department's Energy Information Administration (EIA), crude stockpiles dropped by 4.0 million barrels for the week ended October 30 while gasoline inventories dropped by 0.3 million barrels, surprising most analysts who had expected for a rise.
The dollar retreated after the Federal Reserve decided to leave the interest rate unchanged at a record low and again pledged to keep it there for an "extended period" to foster the fragile economic recovery. A weaker dollar tends to boost commodities priced in the U.S. currency as they become cheaper for holders of other currencies.
In London, Brent Crude for December delivery added 78 cents to settle at 78.89 dollars a barrel on the ICE Futures exchange.