BLBG:Oil Trades Near Two-Week High On Forecasts U.S. Supplies Dropped
Oil traded near its highest in two weeks in New York on forecasts that crude inventories declined in the U.S., the world’s largest consumer of the commodity.
West Texas Intermediate futures were little changed, recouping an earlier loss of 0.5 percent. U.S. crude stockpiles probably fell by 1.6 million barrels last week, according to a Bloomberg News survey of nine analysts before an Energy Department report tomorrow. Tropical storm Ernesto was forecast to become a hurricane as it heads for Mexico’s Bay of Campeche. Oil also gained as the dollar weakened against the euro and European stocks recovered.
Crude for September delivery was at $92.36 a barrel in electronic trading on the New York Mercantile Exchange at 8:34 a.m. London time, having slid as much as 42 cents to $91.78 a barrel. It settled yesterday at $92.20, the highest level since July 19. Prices are 7 percent lower this year.
Brent crude for September settlement was at $109.89 a barrel, up 34 cents, on the London-based ICE Futures Europe exchange. The European benchmark’s premium to West Texas Intermediate was at $17.56 from $17.35 yesterday.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
