West Texas Intermediate oil advanced from a two-month low as U.S. crude inventories fell. Prices also rose after China’s economic growth exceeded forecasts.
U.S. crude stockpiles declined by 4.8 million barrels last week, the American Petroleum Institute was said to have reported yesterday. The Energy Information Administration is projected to report that supplies fell by 2.75 million barrels, a Bloomberg survey shows. China’s gross domestic product grew 7.5 percent from a year earlier in the second quarter, government data show.
“The supply drawdown in yesterday’s report together with recent headlines has the bulls back in the market,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “We’re expecting a good-sized change in today’s data.”
WTI for August delivery increased 67 cents, or 0.7 percent, to $100.63 a barrel at 9:30 a.m. on the New York Mercantile Exchange. It dropped to $99.96 yesterday, the lowest close since May 6. The volume of all futures traded was 14 percent above the 100-day average for the time of day.
Brent for August settlement, which expires today, slipped 23 cents to $105.79 a barrel on the London-based ICE Futures Europe exchange. Prices decreased to $106.02 yesterday, the lowest settlement since April 7. The September contract gained 25 cents, or 0.2 percent, to $107.13. Volumes were 79 percent above the 100-day average.
The European benchmark traded at a $5.16 premium to WTI, down from $6.06 yesterday.