Crude oil futures fell Wednesday after U.S. government data showed U.S. crude inventories rose more than expected last week and the interest cut by the U.S. Federal Reserve.
Crude for June delivery closed down 2.17 U.S. dollars, or 1.9 percent, at 113.46 dollars a barrel on the New York Mercantile Exchange.
In its weekly inventory report, the Energy Department's Energy Information Administration said crude oil inventories rose by 3.8 million barrels in the week ending April 25, more than double the increase that analysts surveyed by energy research firm Platts had expected.
The central bank on Wednesday cut its funds rate, which sets rates for banks' overnight lending needs, by a quarter of one percentage point at its meeting which ended Wednesday afternoon. The decision didn't trigger a big reaction in energy markets.
The rate cut, while smaller than the Fed's aggressive cuts earlier this year, was in line with what many traders expected.
Interest rate cuts tend to weaken the dollar, and investors buy commodities such as oil as a hedge against inflation when the greenback falls. A weaker dollar also makes oil cheaper for overseas buyers.
Source: Xinhua
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