Oil Rises After Low Supply Forecast

West Texas Intermediate climbed to its highest intraday level in two weeks amid speculation that crude stockpiles declined again in the U.S., the world’s biggest oil consumer. Brent also gained in London.

Futures advanced as much as 85 cents in New York for a second daily gain. Crude supplies previously near a record high probably fell by 1 million barrels last week to 396.6 million, according to a Bloomberg News survey before a government report tomorrow. Stockpiles at Cushing, Oklahoma, the delivery point for New York crude futures, probably fell for a 14th time in 15 weeks, according to a separate Bloomberg survey.

“There could be further stock draws in Cushing, which will continue to support the WTI” market, Olivier Jakob, managing director at Petromatrix GmbH in Zug, Switzerland, said by e-mail.

WTI for June delivery rose to as much $101.44 a barrel in electronic trading on the New York Mercantile Exchange, the highest since April 29, and traded for $101.26 at 1:02 p.m. London time. The volume of all futures traded was about 52 percent above the 100-day average for the time of day. Prices are up 2.9 percent this year.

Brent for June settlement was 29 cents higher at $108.70 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.47 to WTI on ICE. It ended the session at $7.82 yesterday.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza