BLBG:Oil Declines From High as Crude Stocks Seen Rising
Oil traded near its highest in a week in New York as concern that political tension in the Middle East may curb crude exports countered signs that supplies are building up as the global recovery falters.
Futures were little changed, having surged 3.4 percent yesterday after the Turkish army fired on Syrian artillery units and tanks for a sixth day, fanning speculation a conflict between the two countries may spread and threaten Middle East output. U.S. crude inventories probably rose 1.5 million barrels last week, according to a Bloomberg News survey before an Energy Department report tomorrow. The American Petroleum Institute will release separate supply data later today.
“Clearly we have some additional bullish influence from Syria and events in Iran,” said Filip Petersson, a commodities strategist at SEB AB in Stockholm, who predicts Brent crude will average $110 a barrel this quarter. “There’s upside risk on the geopolitical side, but then of course there are headwinds from slowing growth.”
Crude for November delivery was at $92.33 a barrel, 6 cents lower in electronic trading on the New York Mercantile Exchange as of 12:52 p.m. London time. The contract increased $3.06 yesterday to $92.39, the highest close since Oct. 1. Prices are down 7 percent this year.
Brent for November settlement on the London-based ICE Futures Europe exchange gained 6 cents to $114.56 a barrel. The European benchmark crude was at a premium of $22.10 to New York- traded West Texas Intermediate. The spread was $22.49 on Oct. 8, the widest gap based on closing prices since October 2011.
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
