Oil Rises to Four-Month High as on Cushing Supplies

Posted by jalatama Rabu, 19 Februari 2014 4 komentar


West Texas Intermediate crude surged above $102, the highest level in four months, on speculation that inventories in Cushing, Oklahoma, decreased last week and as cold weather in the U.S. boosted fuel demand.

Prices climbed the most since Dec. 3. Supplies at Cushing, the delivery point for WTI futures, probably dropped for a third week, five analysts said. A second storm in three days has brought snow to the U.S. Northeast and mid-Atlantic, bolstering the use of distillate fuels, including heating oil and diesel.

WTI for March delivery increased $2.13, or 2.1 percent, to $102.43 a barrel on the New York Mercantile Exchange, the highest settlement since Oct. 10. Prices have rallied 5.1 percent this month. The volume of all futures traded was 25 percent above the 100-day average at 5:09 p.m. Floor trading was closed yesterday for the U.S. Presidents Day holiday.

Prices extended gains after the settlement, surging as much as 2.9 percent in electronic trading to $103.25 a barrel. Futures advanced $2.83, or 2.8 percent, to $103.13 at 5:09 p.m.

Brent for April settlement rose $1.28, or 1.2 percent, to $110.46 a barrel on the London-based ICE Futures Europe exchange. Volume was 29 percent below the 100-day average. The European benchmark grade was at a premium of $8.36 to WTI for the same month. The spread was $8.95 on Feb. 14, the widest in a week based on closing prices.
(Source: Bloomberg)


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