2017.09.2108:21:00UTC+00Crude Oil Rally Loses Steam After Fed Statement

Crude oil futures failed to sustain yesterday's rally but held above $50 a barrel Thursday morning.

A stronger dollar in the wake of the Federal Reserve's relatively hawkish policy statement has dented commodity prices.

Yesterday, the Fed kept its key interest rate unchanged but maintained their so-called 'dot plot' of rate projections for this year and next, strongly hinting at a December rate hike.

Also, the Fed said it will begin shrinking its bloated $4.5 trillion portfolio in October by allowing $10 billion in bonds to mature without replacing them.

Meanwhile, U.S. crude inventories rose for a third straight week, by 4.6 million barrels in the week ending Sept. 15, the Energy Information Administration said yesterday.

WTI light sweet crude oil was down 53 cents at $50.16 a barrel, easing from a 4-month peak.