West Texas Intermediate rose, narrowing its discount to Brent, on speculation inventories at Cushing, Oklahoma, decreased for an eighth time last week and on a gain in orders for durable goods.
Prices climbed as much as 0.6 percent. Stocks at the delivery point may have dropped from a two-year low in the week ended March 21, according to analysts surveyed by Bloomberg before an Energy Information Administration report today. The American Petroleum Institute said yesterday that Cushing stockpiles fell 1.03 million barrels last week. WTI also climbed as a report showed U.S. durable-goods orders rose more than forecast last month.
“We are looking for Cushing supplies to continue falling, which is putting upward pressure on WTI,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It’s surprising that WTI and Brent prices haven’t come in more because of the Cushing supply change.”
WTI for May delivery gained 57 cents, or 0.6 percent, to $99.76 a barrel at 9:02 a.m. on the New York Mercantile Exchange. Trading was less than half the 100-day average for the time of day.
Brent for May settlement gained 29 cents, or 0.3 percent, to $107.28 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.52 to WTI, down from yesterday’s $7.80.
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