Oil Surges as Traders Await Fed Cut, Industry Sees Storage Drop
- API report of seventh straight stockpile decline adds to rally
- WTI spikes above $58 a barrel, for fourth gain in a row
Photographer: Trevor Snapp/Bloomberg
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Oil surged as the Federal Reserve moved toward a rate-cut to boost the economy while tensions with Iran threatened to choke Middle East supplies.
Futures in New York closed 2.1% higher, rising for a fourth straight session. The Fed opened a two-day meeting on Tuesday where it’s expected to lower borrowing costs for the first time in more than a decade. Iran, meanwhile, appealed to France for help in the face of U.S. sanctions that have caused the OPEC member’s crude exports to plunge.