Oil rose from the lowest level in more than 5 1/2 years before the weekly inventory report from the Energy Information Administration.
Futures gained for the first day this week in London and New York. U.S. crude stockpiles probably expanded 1.75 million barrels last week, a Bloomberg survey showed before today’s report. Prices may recover in the second half of the year if demand improves, Ali Al Yabhouni, the United Arab Emirates’ governor to the Organization of Petroleum Exporting Countries, said yesterday.
Oil slumped almost 50 percent last year, the most since the 2008 financial crisis, as OPEC resisted calls to cut production even as the U.S. pumped at the fastest rate in more than three decades. WTI briefly traded higher than Brent yesterday for the first time since July 2013, a signal that Saudi Arabia’s strategy of curbing shale output growth is working, according to Societe Generale SA.
“The market’s trying to stabilize,” Gene McGillian, a senior analyst at Tradition Energy in Stamford, Connecticut, said by phone. “We’re trying to catch our breath and seeing a bit of covering before the report. If the data shows an inventory build the market will probably stall and come under renewed selling pressure.”
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