BLBG:WTI Declines a Third Day as U.S. Crude Stockpiles Seen Rising
West Texas Intermediate oil fell for a third day after an industry report showed U.S. crude stockpiles increased the most in more than four years.
Futures slid as much as 1 percent in New York after the American Petroleum Institute said crude supplies rose by 8.97 million barrels last week, the biggest gain since January 2009. An Energy Information Administration report today is projected to show inventories dropped by 1.5 million barrels, according to a Bloomberg News survey. The Organization of Petroleum Exporting Countries yesterday kept its demand forecast for 2013 unchanged, citing risks to the global economy.
“When we look at the bearish factors, we have to look at those inventories,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin, a commodity newsletter in Sydney. “The oil market is moving sideways,” he said, predicting investors may buy WTI contracts at about $91.40 a barrel.
WTI for July delivery declined as much as 92 cents to $94.46 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.12 at 3:39 p.m. Singapore time. The volume of all futures traded was 33 percent below the 100-day average. The contract lost 39 cents, or 0.4 percent, to $95.38 yesterday, the lowest since June 6.
Brent for July settlement fell as much as 73 cents, or 0.7 percent, to $102.23 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade was at a premium of $7.57 to WTI futures. The spread narrowed for a fifth day yesterday to close at $7.58.
Fuel Stockpiles
U.S. gasoline inventories climbed 1.04 million barrels last week, the API said. The EIA report is projected to show that supplies increased 500,000 barrels, according to the median estimate of 11 analysts in the Bloomberg survey. The EIA is the Energy Department’s statistical arm.
Distillate-fuel stockpiles, including heating oil and diesel, rose 199,000 barrels last week, the API said. They are forecast to gain 1.5 million barrels, the survey shows.
The API in Washington collects the information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the EIA for its weekly survey.
The EIA increased its WTI price forecast for 2013 as heating demand boosted consumption of distillates and liquefied petroleum gas. New York futures will average $93.25 a barrel this year, up 8 cents from the May projection of $93.17, the EIA said yesterday in its monthly Short-Term Energy Outlook. The U.S. benchmark grade will drop to $91.96 in 2014.
OPEC Forecast
Global oil demand will rise by 780,000 barrels a day, or 0.9 percent, this year to 89.7 million a day, OPEC said yesterday in its monthly report. The estimate was in line with a previous forecast.
OPEC boosted production by 106,000 barrels a day to 30.57 million a day last month, led by gains in Saudi Arabia, the group said, citing secondary sources. OPEC’s biggest member raised output by 143,400 barrels a day to 9.4 million a day, the highest in six months.
Iranian production slid the most, declining 37,700 barrels a day in May to 2.6 million, the report showed. Libya’s output decreased 27,300 barrels a day to a two-month low of 1.4 million barrels.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
