WTI Rises for Second Day as U.S. Crude Stockpiles Seen Declining

Jalatama, West Texas Intermediate rose for a second day on speculation government data will show crude stockpiles dropped for a sixth week in the U.S., the world’s biggest oil consumer.

Futures climbed as much as 0.4 percent in New York. Crude inventories declined by 2.75 million barrels last week, according to a Bloomberg News survey before an Energy Information Administration report today. Supplies fell by 7.31 million, the industry-funded American Petroleum Institute said yesterday. The coldest U.S. weather in almost 20 years also signaled fuel demand may increase.

WTI for February delivery increased as much as 40 cents to $94.07 a barrel in electronic trading on the New York Mercantile Exchange, and was at $93.87 at 1 p.m. Sydney time. The contract advanced 24 cents to $93.67 yesterday. The volume of all futures traded was about 48percent below the 100-day average.

Brent for February settlement gained 1 cent to $107.36 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a $13.49 premium to WTI. The spread closed at $13.44 yesterday, narrowing for the first time in six days.

(Source: Bloomberg)