West TX Oil Stays Around $94.50 as Supplies Decline

West Texas Intermediate traded near the highest price in four days as crude and gasoline inventories shrank in the U.S., the world’s biggest oil consumer. Brent was steady in London.

Futures were little changed in New York after rising 2 cents yesterday. Crude stockpiles declined by 2.07 million barrels to 360.5 million last week, the Energy Information Administration reported. Supplies were projected to drop by 2.5 million, a Bloomberg News survey shows. Libya may increase production to 1 million barrels a day by the end of the September, according to state-run National Oil Corp.

“It looks like we’ve removed almost all of the risk premium associated with geopolitical problems, and we’re now returning to a more normal examination of supply and demand,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone. “With that draw, the demand picture looks to be catching up. We might be looking at a period of stability.”

Bloomberg

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