Oil Rises Before Inventory Report with Decline Forecasted

West Texas Intermediate increased for a second day before a government report that’s forecast to show U.S. crude stockpiles dropped. Brent advanced in London.

Crude supplies probably fell by 2.5 million barrels last week, according to a Bloomberg survey before Energy Information Administration data today. The American Petroleum Institute was said to have reported that inventories slipped by 1.3 million barrels. Fighting in eastern Ukraine between government forces and pro-Russian rebels raged on after the Russian and Ukrainian presidents hailed as “positive” talks on ending the conflict.

“We’re getting a little support from yesterday’s API number,” Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut, said by phone. “We’re now waiting to see what’s in today’s report. It looks like a small supply drop has been priced in.”

WTI for October delivery rose 14 cents to $94 a barrel at 9:05 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 56 percent below the 100-day average for the time of day.

Brent for October settlement rose 31 cents, or 0.3 percent, to $102.81 a barrel on the London-based ICE Futures Europe exchange. Volumes were 16 percent lower than the 100-day average. The European benchmark crude traded at an $8.81 premium to WTI, up from $8.64 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