West Texas Intermediate crude is poised for a second weekly gain on speculation stronger U.S. economic growth will increase demand.
The U.S. economy expanded in the second quarter at the fastest rate since the last three months of 2011, the Commerce Department said. Brent is set for the third weekly drop in four as ample supplies shield the oil market from the U.S. military campaign against Islamic State.
“Improving U.S. economic conditions should improve the fundamental outlook here,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The market is trying to stabilize. We still have a lot of supply out there and that’s weighing on the overall market.”
WTI for November delivery rose 12 cents, or 0.1 percent, to $92.65 a barrel at 9:15 a.m. on the New York Mercantile Exchange. Prices are up 0.4 percent this week. The volume of all futures was 7.3 percent above the 100-day average.
Brent for November settlement fell 5 cents to $96.95 on the ICE Futures Europe exchange. The volume of all futures traded was about 28 percent below the 100-day average. Prices have slid 1.5 percent this week. WTI was at a discount of $4.20 to Brent on ICE, compared with $6.74 at the end of last week.
U.S. gross domestic product grew at a revised 4.6 percent annualized rate in the second quarter, up from a previous estimate of 4.2 percent, the Commerce Department said. The increase matched the median forecast of 81 economists surveyed by Bloomberg and followed a 2.1 percent decline in the first three months of the year.