WTI Trades Near Four-Week Low as U.S. Discount to Brent Narrows

West Texas Intermediate oil traded near the lowest price in almost a month after dropping the most in a week. New York crude’s discount to London-traded Brent futures narrowed for the first time in six days.

Futures were little changed in New York after slipping 1.4 percent yesterday, trimming the biggest monthly advance since August. U.S. crude inventories decreased by 740,000 barrels last week, the American Petroleum Institute said. A government report today is forecast to show supplies slid by 2.45 million barrels, according to a Bloomberg News survey of analysts.

WTI for September delivery was at $103.16 a barrel, up 8 cents, in electronic trading on the New York Mercantile Exchange at 10 a.m. Sydney time. The volume of all futures traded was 56 percent below the 100-day average. The contract fell $1.47 to $103.08 yesterday, dropping the most since July 24 and closing at the lowest since July 3. Prices are up 6.8 percent this month for a second monthly advance.

Brent for September settlement dropped 11 cents to $106.80 a barrel on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $3.66 to WTI futures, from $3.83 yesterday.

U.S. gasoline supplies increased by 1.8 million barrels last week, the API said. An Energy Information Administration report today will probably show stockpiles declined by 1.5 million barrels, according to the median estimate of 12 analysts in the Bloomberg survey.

(Source: Bloomberg)