WTI Crude Trades Near Five-Week Low as Fuel Supplies Seen Rising

Berita Jalatama, West Texas Intermediate crude traded near the lowest price in more than five weeks amid speculation distillate and gasoline stockpiles increased in the U.S., the world’s biggest oil consumer.

Futures were little changed in New York after declining the past five days, the longest losing streak since September. Distillate inventories, including heating oil and diesel, probably rose 2 by million barrels last week, a Bloomberg News survey shows before Energy Information Administration data tomorrow. U.S. service industries expanded at a slower pace than forecast in December, according to a purchasing managers’ index from the Institute for Supply Management. Brent crude also slid for a fifth day yesterday.

WTI for February delivery was at $93.63 a barrel in electronic trading on the New York Mercantile Exchange, up 20 cents, at 12:26 p.m. Sydney time. The contract fell 0.6 percent to $93.43 yesterday, the lowest close since Nov. 29. The volume of all futures traded was about 40 percent below the 100-day average. Prices dropped 6.9 percent in the past five days.

Brent for February settlement gained 32 cents to $107.05 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $13.42 to WTI. The spread widened for a fifth day yesterday to close at $13.48.

U.S. gasoline stockpiles probably climbed by 2.5 million barrels in the week ended Jan. 3, according to the median estimate of six analysts surveyed before tomorrow’s report from the EIA, the Energy Department’s statistical arm. That would be the sixth increase in seven weeks.

(Source: Bloomberg)