WTI headed for a fourth weekly drop, the longest losing streak since November, amid speculation that crude supplies are rising as global demand slows. Brent gained in London.
WTI will probably fall in the week through Aug. 22 as stockpiles may rise. Twelve respondents predicted prices will climb while 11 estimated little change.
Crude has long-term technical support along its 200-week moving average of about $96 a barrel. Futures rebounded from this indicator in June 2012, April 2013 and January this year. Buy orders tend to be clustered around chart-support levels.
Oil production in the U.S., the world’s biggest consumer, increased to 8.5 million barrels a day in July, the most since April 1987, the Energy Information Administration said in its monthly report. Last week, crude inventories expanded by 1.4 million barrels to 367 million, the first increase since June, data from the Energy Department’s statistical arm show.
Futures were little changed in New York after falling 2.1 percent yesterday, the most in two weeks. A supply glut is shielding the market from disruptions, the International Energy Agency said on Aug. 12, while the U.S. government cut its price forecast as the nation produced oil at the fastest rate in 27 years. WTI will probably decline further in coming days.
WTI for September delivery was at $95.52 a barrel in electronic trading on the New York Mercantile Exchange, down 6 cents, at 4:28 p.m. Sydney time. The contract slid $2.01 to $95.58 yesterday, the lowest settlement since Jan. 21. Prices have decreased 2.2 percent this week.
Brent for October settlement climbed as much as 68 cents, or 0.7 percent, to $102.75 a barrel on the London-based ICE Futures Europe exchange. The September contract expired yesterday after declining 2.2 percent to $102.01. The European benchmark crude traded at a premium of $8.39 to WTI for October, compared with a front-month spread of $7.37 on Aug. 8.
Output from the Organization of Petroleum Exporting Countries climbed to a five-month high of 30.44 million a day in July, amid increases in Saudi Arabia, according to the Paris-based IEA, an adviser to developed nations. OPEC’s 12 members pump about 40 percent of the world’s crude.