NEW YORK (Reuters) - U.S. oil prices tumbled and Brent also fell on Wednesday after crude inventories rose by much more than expected and exports fell, while the dollar added to gains after minutes showed Federal Reserve policymakers generally agreed borrowing costs were set to rise further.
A gauge of stocks across the world dipped, tracking Wall Street’s reaction to the Fed minutes, while the outlook on earnings soured after a warning on the European auto sector and a revenue miss from IBM.
WTI crude touched its lowest price in a month after U.S. stockpiles rose by 6.5 million barrels, almost triple what analysts had forecast. This happened even as U.S. crude production slipped last week, partly as offshore facilities closed temporarily for Hurricane Michael.
WTI fell 2.81 percent to $69.90 per barrel and Brent was last at $80.08, down 1.63 percent on the day.
“A tick higher in refining activity and a drop in production due to hurricane activity in the Gulf was not enough to halt a fourth consecutive climb in (inventories)- and a solid one at that,” said Matt Smith, director of commodity research at ClipperData in Louisville, Kentucky.
MORE ASSERTIVE FED
Every Federal Reserve policymaker backed raising interest rates last month in a meeting where they also generally agreed borrowing costs were set to rise further, according to the minutes from the meeting.
The dollar index hit session highs after the Fed minutes were released, although the bulk of Wednesday’s rally came before the news.
“There
