WTI Crude Advances to 5-Week High on U.S Goods Report

West Texas Intermediate crude advanced to the highest level in almost five weeks as U.S. orders for durable goods climbed more than forecast in February. WTI’s discount to Brent was the narrowest since July.

Futures gained for a third day after the Commerce Department said bookings for goods meant to last at least three years rose 5.7 percent, the most since September and more than the 3.9 percent forecast by economists surveyed by Bloomberg. The spread between WTI and Brent, Europe’s benchmark, has shrunk as U.S. refinery demand and North Sea output have increased.

“The durable goods number is higher than expected and it shows the U.S. economy is on good footing,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “You are continuing to see the Brent-WTI spread contract massively. It looks like the U.S. economy is doing better than Europe.”

WTI for May delivery climbed 69 cents, or 0.7 percent, to $95.50 a barrel at 9:49 a.m. on the New York Mercantile Exchange after rising to $95.88, the strongest intraday level since Feb. 20. Prices are up 4 percent in 2013. The volume of all futures traded was 3.5 percent above the 100-day average for the time of day.

Brent for May settlement rose 22 cents to $108.39 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 26 percent above the 100-day average. Futures have fallen 2.4 percent in 2013. The European benchmark crude’s premium to WTI narrowed to as low as $12.59, the least since July 5.


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.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments.
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
Dean Popplewell