Oil prices rallied on Wednesday, taking advantage of a weaker dollar amid record high US crude inventories.
Brent futures climbed 2.6% to $56.65 a barrel while US crude approached $50 a barrel for the first time in more than two weeks. West Texas Intermediate advanced 3.6% to $49.21 a barrel.
The gains came despite another record buildup in US crude inventories, according to the Energy Information Administration. US crude stockpiles rose by 8.17 million in the week ending March 20, well above the median estimate calling for around 5.1 million. That brought inventory levels to a new record high of 466.7 million.
Crude’s investment appeal was bolstered after another broad selloff of the US dollar. The greenback declined against a trade-weighted basket of currencies and fell more than half a percent against the euro.
The EUR/USD was trading at 1.0963 Wednesday afternoon. The pair broke the 1.10 plateau in midday trade before consolidating lower.
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