West Texas Intermediate traded near a three-day high before a government report forecast to show crude stockpiles dropped for a second week in the U.S., the world’s biggest oil consumer. Brent was steady in London.
Futures were little changed in New York after rising 0.6 percent yesterday. Crude inventories probably shrank by 2.5 million barrels to 360 million last week, according to a Bloomberg News survey before data from the Energy Information Administration. The American Petroleum Institute was said to have reported that supplies fell by 1.3 million barrels. Iran is joining efforts to back Iraqi Kurds battling Islamic State militants who have captured swathes of northern Iraq.
“The Energy Administration figures are a possible market mover,” Ric Spooner, a chief strategist at CMC Markets in Sydney, said by phone. “Geopolitical risk is back in play, simply because the market has stripped a lot of the premium out of pricing, making it vulnerable to any negative news.”