Oil prices get support from Fed, inventories data

|By:, SA News Editor

"News of [the] Fed refraining from tapering comes at the same time as relatively low spare capacity and relatively low crude [and product] stocks," Barclays' oil analyst Miswin Mahesh says.

Mahesh believes emerging market demand is now set up for an upside surprise, as the prospect of rising import costs appears likely to "fade."

MarketWatch notes that the 4.4M barrel decline in crude inventories reported by the EIA on Wednesday "far exceeded [Platts'] expectations for a fall of 1.5M barrels."

The outlook: Barclays sees prices staying put with "an upward bias" for the balance of the year.

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