07.05.202519:55:00UTC+00Crude Oil Pulls Back Sharply After Yesterday's Surge

Crude oil futures moved sharply lower over the course of the trading day on Wednesday, giving back ground following the surge seen in the previous session.

After spiking $1.96 or 3.4 percent to $59.09 a barrel during Tuesday's session, crude for June delivery tumbled $1.02 or 1.7 percent to $58.07 a barrel.

Lingering concerns about the outlook for global demand weigh on the price oil early in the session along with a report from the Energy Information Administration showing crude oil inventories fell by less than expected in the week ended May 2nd.

The report said crude oil inventories fell by 2.0 million barrels last week after declining by 2.7 million barrels in the previous week. Economists had expected crude oil inventories to decrease by 2.5 million barrels.

The price of crude oil saw further downside after the Federal Reserve announced its widely expected decision to leave interest rates unchanged but warned of increasing risks of higher unemployment and higher inflation.