Oil prices on rise for second consecutive days

Oil climbed near $73 a barrel Wednesday after the U.S. government inventory report showed crude supplies fell almost twice as much as analysts expected and the Federal Reserve announced it would keep interest rates near 0%.

Crude oil for January delivery rose $1.97, or 2.79%, to settle at $72.66 a barrel.

On Tuesday, oil rebounded from a nine-day retreat, rising $1.18 to settle at $70.69 a barrel.

"Inventories usually start to fall late in the year, but people have gotten used to them growing so this [report] took them by surprise," said James Cordier, president of Liberty Trading Group.

Investors' optimism about the global economic recovery and their larger appetite for risk also helped boost oil prices, Cordier said.

Stocks rose but lost some ground Wednesday after the Federal Reserve announced its decision to keep interest rates near 0%.

The slight weakness in the dollar has also brought up oil prices, Cordier said. Oil, like other commodities, is priced in dollars, so a weaker greenback helps lift prices.

The Fed's decision could put more pressure on the dollar and push oil prices higher, according to Chris Lafakis, an economist at Moody's Economy.com.

/CNN/