BLBG:Oil Fluctuates In New York As IEA Sees Improved Global Supplies
Oil swung between gains and losses in New York as the International Energy Agency said global markets are better supplied than earlier this year and investors speculated U.S. stockpiles probably fell last week.
Futures were little changed after sliding as much as 0.8 percent, before rebounding 0.6 percent. The Paris-based IEA said in a monthly report global supplies rose by 200,000 barrels to 91.1 million barrels a day in May as Canada and the U.S. increased output. Government data today may show U.S. inventories dropped the most in five months as refineries raised production, according to a Bloomberg News survey.
“It seems like all markets are moving in the same direction,”Thina Saltvedt, an analyst at Nordea Bank AB (NDA) in Oslo, said by phone. “It’s just range-trading.”
Oil for July delivery was at $83.52 at 9:40 a.m. London time. It traded as low as $82.63 a barrel earlier, before climbing to $83.82. Yesterday, futures rose 0.8 percent to $83.32. Prices are down 16 percent this year.
Brent crude for July settlement on the London-based ICE Futures Europe exchange, which expires tomorrow, was 40 cents higher at $97.54 a barrel. The European benchmark grade was at a premium of $14.04 to New York crude from $13.82 yesterday, the lowest since May 5. The more actively traded Brent future for August was up 43 cents at $97.39.
The Organization of Petroleum Exporting Countries, which meets tomorrow in Vienna, cut production last month, ending seven months of increases, as Saudi Arabia and Iraq lowered supplies, the IEA said.
To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ralrikabi@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
