Oil Prices Pared Gains as US Inventory Increased More than Expected

Crude oil prices retreated, on profit-taking and as US inventory rose more than expected. The front-month WTI crude contract slipped -0.52% while the Brent contract dropped -0.68%. Both rallied more than +5% in the prior day. It looks like now that a rate hike in December is fully priced in with Bloomberg’s estimate and CME’s 30-day Fed fund futures pricing in 96% and 90% chance respectively. US dollar strengthened further with the USD index (DXY) soaring to a 13-year high of 100.57 before pullback. Wall Street slipped with DIJA and S&P 500 indices losing -0.29% and -0.16% respectively.