WTI Trades Near Five-Week High

December 5, 2013

West Texas Intermediate traded near the highest price in more than a month after crude inventories shrank for the first time in 11 weeks in the U.S., the world’s biggest oil consumer, Bloomberg reported on December 5.

Futures fluctuated in New York after gaining 1.2 percent yesterday to cap a four-day advance, the longest rising streak since August. U.S. crude stockpiles fell by 5.59 million barrels last week as refiners boosted processing, data from the Energy Information Administration show. Supplies were forecast to drop 500,000 barrels, according to a Bloomberg News survey. OPEC agreed to maintain its production target at a meeting on December 5.

WTI for January delivery was at $97.29 a barrel in electronic trading on the New York Mercantile Exchange, up 9 cents, at 3 p.m. Singapore time. The contract climbed $1.16 to $97.20 yesterday, the highest close since Oct. 29. The volume of all futures traded was about 39 percent below the 100-day average. Prices are up 6 percent this year.

Brent for January settlement slid 30 cents to $111.58 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $14.28 to WTI. The spread was $14.68 yesterday, the narrowest since Nov. 21 based on closing prices.

Copyright: Bloomberg, 2013