WTI Crude Rebounds as U.S. Supplies Drop by Most Since December

West Texas Intermediate crude rose for the second time in three days as an industry report showed U.S. inventories dropped the most since December.

Futures gained as much as 0.7 percent in New York after the American Petroleum Institute said crude stockpiles shrank 7.8 million barrels last week. A government report today is forecast to show supplies declined by 800,000 barrels, according to a Bloomberg News survey of analysts. The U.S. will extend waivers for nine nations that import Iranian oil from sanctions, an official said. Employment data from the U.S. and trade figures from China are scheduled this week.

WTI for July delivery climbed as much as 67 cents to $93.98 a barrel in electronic trading on the New York Mercantile Exchange and was at $93.86 at 11:30 a.m. Sydney time. The volume of all futures traded was 36 percent below the 100-day average. Prices slid 14 cents to $93.31 yesterday.

Brent for July settlement rose as much as 25 cents, or 0.2 percent, to $103.49 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade was at a premium of $9.64 to WTI futures. The spread was $9.93 yesterday, the widest based on closing prices since April.

(Source: Bloomberg)