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Wednesday, January 15, 2014

World oil prices rise as U.S. inventories fall



World oil prices rise as U.S. inventories fall

 World oil prices rose on Wednesday (Thursday morning GMT ) , as U.S. crude inventories fell more than expected , indicating strong demand in the world's largest economy .

Light sweet crude or West Texas Intermediate ( WTI ) for February delivery , rose 1.58 dollars to close at 94.17 dollars a barrel on the New York Mercantile Exchange , Xinhua reported .

Brent North Sea crude for February delivery rose 79 cents to settle at 107.18 dollars in London at the end of the transaction .

U.S. Department of Energy ( DoE ) said commercial crude oil inventories fell by 7.7 million barrels in the week ending January 10 . That compared with analyst expectations for a decline of 800,000 barrels .

" U.S. inventories showed a decline of 7.66 million barrels during last week , far beyond expectations ... which will maintain a basic level of prices in the short term and has helped pull prices rise sharply , " said Michael Hewson , chief analyst at CMC Markets trader .

Global economic growth is projected to increase this year , supporting demand for crude oil .

The World Bank on Tuesday raised its forecast for global economic growth , but warned of the potential volatility in capital flows when the United States withdrew its stimulus .

Dalaml latest Global Economic Prospects report , the World Bank said that the high-income countries and developing looks " eventually turned five years after the global financial crisis " .

Global economic growth is expected to reach 3.2 percent this year , faster than the 2.4 percent annual rate in 2013 .

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