West TX Oil to above $103.50 as Stockpiles Decline

West Texas Intermediate rose for the third time in four days after industry data showed crude inventories slid in the U.S., the world’s biggest oil consumer. Brent was steady in London.

Futures for July advanced as much as 0.6 percent in New York. Crude supplies shrank by 10.3 million barrels last week, the American Petroleum Institute reported yesterday. Stockpiles were probably unchanged near a record high, according to a Bloomberg News survey before government data today. Russia said its troops are pulling back from Ukraine’s border as Prime Minister Dmitry Medvedev warned the U.S. and the European Union that they risk provoking a new Cold War.

“The inventory figures will be important now, there are signs that refinery capacity is picking up as we move into the summer driving season,” said Ric Spooner, a chief strategist at CMC Markets in Sydney who predicts investors may sell West Texas contracts if prices climb to $105 a barrel. “We’re heading into the time of the year where things start to become more positive for oil consumption.”

Bloomberg

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