WTI Crude Trades Near One-Week High as Stockpiles Seen Falling

Bloomberg, (2/7) -- West Texas Intermediate traded near the highest level in more than a week on speculation U.S. crude stockpiles shrank for the first time in a month, signaling increased demand in the world’s largest oil consumer.

Futures were little changed in New York after rising 1.5 percent yesterday amid signs of U.S. economic growth and concern that unrest in Egypt may spread and disrupt Middle East oil supplies. Crude inventories probably fell by 2.63 million barrels last week, a Bloomberg News survey showed before a government report tomorrow. The American Petroleum Institute is scheduled to release separate supply data today.

WTI for August delivery was at $97.93 a barrel, down 6 cents, in electronic trading on the New York Mercantile Exchange at 1:30 p.m. Sydney time. The volume of all futures traded was 54 percent below the 100-day average. The contract climbed $1.43 to $97.99 yesterday, the highest close since June 19.

Brent for August settlement rose 6 cents to $103.06 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade was at a premium of $5.12 to WTI. The spread was $5.01 yesterday, the narrowest closing gap since Jan. 4, 2011, after dropping below $5 in intraday trading.