West Texas Intermediate advanced for the second time in three days before supply data that may signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent traded near the lowest in almost 14 months.
Futures climbed as much as 0.7 percent in New York. Crude stockpiles probably fell by 1.75 million barrels to 365.3 million last week, a Bloomberg News survey showed before an Energy Information Administration report tomorrow. CVR Energy Inc. (CVRR)’s refinery in Coffeyville, Kansas, is restarting operations, Genscape Inc. said yesterday. Brent plunged yesterday as Kurdish and Iraqi forces regained control of Iraq’s largest dam, stalling an advance by Islamic State militants.
“WTI is being supported by the restart of the Coffeyville, Kansas, refinery, and by the expectation of a draw in U.S. crude oil inventories,” Tamas Varga, an analyst at PVM Oil Associates Ltd. in London, said by e-mail.
WTI for September delivery, which expires tomorrow, gained as much as 64 cents to $97.05 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.72 at 1:02 p.m. London time. The more-active October contract was up 25 cents at $94. The volume of all futures traded was about 8.8 percent above the 100-day average for the time of day. Front-month prices declined 1.7 percent this year.
Brent for October settlement rose 6 cents to $101.66 a barrel on the London-based ICE Futures Europe exchange. It slumped 1.9 percent to $101.60 yesterday, the lowest settlement since June 25, 2013. The European benchmark crude traded at a premium of $7.67 to WTI for the same month. The spread closed at $7.85 yesterday.