WTI Oil Trades Near Two-Day High; China Increases Fuel Prices

West Texas Intermediate oil traded near the highest level in two days as China increased fuel prices for the first time since September and Iran prepared for international talks on its nuclear program.

Futures were little changed after climbing the first day in three on Feb. 22. Gasoline in China will rise by 300 yuan ($48) a metric ton and diesel by 290 yuan a ton today, the National Development and Reform Commission said. Iran, which is under a Western embargo on its oil exports, will meet the U.S. and five other nations tomorrow in Almaty, Kazakhstan, after an eight- month lapse.

“There’s not much sign there will be any advancement in the negotiations this week,” Robin Mills, the head of consulting at Dubai-based Manaar Energy Consulting and Project Management, said yesterday. “I’m not hopeful for any deal being reached in Kazakhstan. I haven’t seen any signs the U.S. will offer Iran any sanctions relief.”

WTI for April delivery was at $93.28 a barrel, up 15 cents, in electronic trading on the New York Mercantile Exchange at 10:47 a.m. Sydney time. The contract rose to $93.13 on Feb. 22, the highest since Feb. 20. The volume of all futures traded was 21 percent below the 100-day average. Prices dropped 2.9 percent last week, the most since December.

Brent oil for April settlement climbed 14 cents to $114.24 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade was at a premium of $20.96 to WTI futures, from $20.97 on Feb. 22.

(source: Bloomberg)