Oil Rises on Less Available Supply

West Texas Intermediate rose for a second day after an industry report showed crude inventories declined in the U.S., the world’s biggest oil consumer. Brent climbed on signs of worsening security in eastern Libya.

Futures advanced as much as 0.8 percent in New York. Crude stockpiles fell by 1.4 million barrels last week as supplies at Cushing, Oklahoma, the delivery point for WTI, slid 300,000 barrels, the American Petroleum Institute said yesterday. Government data today is forecast to show a 250,000 barrel drop nationwide, according to a Bloomberg News survey. Oil companies concerned over fighting in Libya’s eastern city of Benghazi are evacuating workers, state-run news agency Lana reported.

“WTI has been supported by persistent crude stockpile draws at Cushing at the end of the spring,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said by e-mail.

WTI for July delivery climbed as much as 81 cents to $103.47 a barrel in electronic trading on the New York Mercantile Exchange and was at $103.28 at 1:26 p.m. London time. The contract rose 19 cents to $102.66 yesterday. The volume of all futures traded was about 8 percent below the 100-day average for the time of day. Prices are up 4.9 percent this year.

Brent for July settlement was 42 cents higher at $109.24 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $5.97 to WTI on ICE, compared with $6.16 yesterday.

via Bloomberg

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