WTI Crude Trades Near Nine-Month High as U.S. Stockpiles Decline

West Texas Intermediate crude traded near the highest level in nine months after an industry report showed U.S. stockpiles dropped last week.

Futures were little changed in New York after advancing 0.7 percent yesterday. U.S. crude inventories dropped by 4.3 million barrels last week, the industry-funded American Petroleum Institute said. A government report today may show supplies declined by 500,000 barrels, according to a Bloomberg survey. Russian President Vladimir Putin agreed to sign a statement at the Group of Eight summit calling for the establishment of a “transitional government” in Syria, easing concern that unrest will spread.

West Texas Intermediate for July delivery, which expires tomorrow, advanced 5 cents to $98.49 a barrel in electronic trading on the New York Mercantile Exchange at 9:53 a.m. Sydney time. The volume of all futures traded was 54 percent below the 100-day average. Prices climbed 67 cents to $98.44 yesterday, the highest close since Sept. 14. The more-active August contract increased 7 cents to $98.74.

Brent for August settlement rose 55 cents, or 0.5 percent, to $106.02 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark grade ended the session at a premium of $7.35 to WTI futures, the narrowest spread since January 2011.

U.S. gasoline stockpiles rose by 918,000 barrels last week, the API said. An Energy Information Administration report today may show they increased by 750,000 barrels, according to the median estimate of 12 analysts in the Bloomberg survey.

(Source: Bloomberg)