WTI Crude Heads for Longest Gain In Three Months

West Texas Intermediate rose for a fifth day, its longest increase since April, on that signs of economic recovery in the U.S. and Germany will support fuel consumption.

WTI futures climbed as much 0.8 percent. German retail sales rose more than forecast in May, adding to signs that a recovery in Europe’s largest economy has gathered pace this quarter. Fewer Americans filed claims for weekly unemployment benefits and consumer spending rebounded in May, U.S. government data showed yesterday. Brent’s premium to WTI shrank after closing at the narrowest since January 2011.

“Oil trading is mostly macro-driven today,” said Andrey Kryuchenkov, an analyst at VTB Capital in London who sees WTI meeting “very strong resistance” next month at $99 a barrel. “Refinery runs in the U.S. are very healthy, but the upside for crude will still be limited by the long-term comfortable cushion of supply.”

WTI for August delivery increased as much as 77 cents to $97.82 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since June 20, and was at $97.33 at 11:55 a.m. London time. The contract rose $1.55, or 1.6 percent, to $97.05 yesterday, the biggest gain since May 3. The volume of all futures traded was 35 percent higher than the 100-day average. Futures are up 5.8 percent this month and little changed in the second quarter.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell