2023.03.2219:21:00UTC+00Oil Futures Settle Higher As Gasoline Stockpiles Drop

Crude oil futures settled higher on Wednesday as the dollar slid even as the Federal Reserve raise interest rates by 25 basis points.

The dollar eased as the central bank's latest projects suggest the Fed plans to raise rates just one more time this year to a range of 5.0 to 5.25%.

The latest increase matches the rate hike seen in early February, which came after the central bank raised rates by 75 basis points in November and by 50 basis points in December.

While the Fed also said additional policy firming may be appropriate, that marks a shift from saying ongoing increases in rates will be appropriate.

The central bank's latest projections suggest the Fed plans to raise rates just one more time this year to a range of 5.0 to 5.25 percent.

Data showing a larger than expected fuel demand for last week helped lift oil prices.

West Texas Intermediate Crude oil futures for May settled at $70.90 a barrel, gaining $1.23 or about 1.8%.

Data from Energy Information Administration (EIA) showed crude inventories rose by 1.117 million barrels in the week ended March 17.

Gasoline inventories dropped by 6.399 million barrels last week, more than three times the drop of 2.061 million barrels seen last week.

Distillate stockpiles were down 3.313 million barrels last week, more than twice the expected drop.