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Oil Prices Climb After Fed Verdict

Oil prices rose over 1 percent on Thursday supported by record U.S. implied demand and falling crude stockpiles.

Brent crude futures for February delivery climbed 1.1 percent to $74.71 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 1.2 percent at $71.70.

Data released by Energy Information Administration (EIA) showed crude inventories in the U.S. dropped by 4.6 million barrels in the week ended December 10.

The EIA data also said gasoline stockpiles were down by nearly 720,000 barrels last week, while distillate stocks fell by 2.85 million barrels in the week.

The EIA said product supplied by refineries, a proxy for demand, surged in the most recent week to 23.2 million barrels per day (bpd).

The announcement of faster tapering after Wednesday's FOMC meeting also triggered a jump in oil prices.

Fed Chair Jerome Powell put forward a bullish outlook on the economy saying consumer demand, labour market, and overall economic conditions in the United States are "hot"

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Market Analysis

Inflation data from the U.S. garnered maximum attention this week on the economics front, along with the interest rate decision by the European Central Bank. Read our stories to find out how these two key events are set to influence monetary policy in the months ahead. Other main news from the U.S. were the release of the minutes of the latest Fed policy session and the jobless claims data. Elsewhere, the interest rate decision by the Bank of Canada was also in focus.

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