WTI Gains as U.S. Fuel Stockpiles Apparently Shrink

November 20, 2013

West Texas Intermediate rose for a second day amid speculation U.S. fuel supplies declined and after the Federal Reserve signaled it will maintain steps to sustain the economic recovery, Bloomberg reported on November 20. 

Futures climbed as much as 0.4 percent in New York. A “preponderance of data” would be needed before the central bank started removing stimulus, Fed Chairman Ben S. Bernanke said on November 19. Gasoline and distillate inventories probably shrank last week, while crude stockpiles expanded, according to a Bloomberg News survey before data from the Energy Information Administration today. World powers and Iran are resuming talks in Geneva over the Persian Gulf nation’s nuclear program.

WTI for December delivery, which expires today, gained as much as 38 cents to $93.72 a barrel on the New York Mercantile Exchange. The more-active January contract increased 28 cents to $94.17 at 3:45 p.m. Singapore time. The volume of all futures traded was almost six times the 100-day average.

Brent for January settlement rose as much as 47 cents, or 0.4 percent, to $107.39 a barrel on the London-based ICE Futures Europe exchange. It was at a premium of $12.90 to WTI for the same month. The spread was $13.03 yesterday, the narrowest in a week based on closing prices.

Copyright: Bloomberg, 2013