Oil rises on U.S. inventory drop, Russian gas cuts
LONDON (Reuters) -Oil rose by $1 a barrel on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a looming U.S. interest rate hike.
Brent crude rose 91 cents, or 0.9%, to $105.31 a barrel at 0811 GMT. U.S. West Texas Intermediate (WTI) crude gained $1.16, or 1.2%, to $96.14.
Oil has soared in 2022, reaching a 14-year high of $139 a barrel in March after Russia's invasion of Ukraine added to supply worries and as demand recovered from the pandemic.
Since then, concerns of economic slowdown and rising interest rates have weighed, despite supply outages in Libya and Nigeria and cuts in Russian gas flows to Europe.
Later on Wednesday, the U.S. Federal Reserve is expected to announce an aggressive rate rise of 75 basis points, a prospect that analysts said was limiting the rally.