West Texas Intermediate increased for a second day before a government report that’s forecast to show U.S. crude stockpiles dropped. Brent advanced in London.
Crude supplies probably fell by 2.5 million barrels last week, according to a Bloomberg survey before Energy Information Administration data today. The American Petroleum Institute was said to have reported that inventories slipped by 1.3 million barrels. Fighting in eastern Ukraine between government forces and pro-Russian rebels raged on after the Russian and Ukrainian presidents hailed as “positive” talks on ending the conflict.
“We’re getting a little support from yesterday’s API number,” Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut, said by phone. “We’re now waiting to see what’s in today’s report. It looks like a small supply drop has been priced in.”
WTI for October delivery rose 14 cents to $94 a barrel at 9:05 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 56 percent below the 100-day average for the time of day.
Brent for October settlement rose 31 cents, or 0.3 percent, to $102.81 a barrel on the London-based ICE Futures Europe exchange. Volumes were 16 percent lower than the 100-day average. The European benchmark crude traded at an $8.81 premium to WTI, up from $8.64 yesterday.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.