Oil prices recovered from their drops from the last two days and rose on news that theFederal Reserve would keep its stimulus efforts in place and U.S. crude inventories dropped to their lowest levels in approximately 18 months.
This morning's EIA inventory report showed that crude stockpiles dropped by 4.4 million barrels last week, surprising many analysts and investors who were expecting a drop of about 1.2 million barrels.
The report helped to extend the gains WTI was already seeing in early trading.
Later in the day, the Federal Open Market Committee said that it will continue its bond-buying program at the current pace.
The news came as a surprise, as many have been anticipating that the central bank will reduce its buying rate beginning this month.
WTI rose $2.65 to settle at $108.07/bbl, while Brent jumped $2.41 to settle at $110.60/bbl. Bunker prices were firm in the primary ports.