WTI Rises From Six-Month Low After Declines in US Inventories

by on August 6, 2014 4:42 pm BST

West Texas Intermediate crude rose from a six-month low after an Energy Information Administration report showed declines in U.S. inventories of crude oil, gasoline and distillates.

The EIA said crude supplies decreased 1.76 million barrels in the week ended Aug. 1. Gasoline inventories fell 4.39 million barrels to 213.8 million and distillates dropped 1.8 million to 124.9 million. Stockpiles at Cushing, Oklahoma, the delivery point for WTI futures, rose 83,000 barrels to 18 million.

WTI for September delivery gained 68 cents, or 0.7 percent, to $98.06 a barrel at 10:35 a.m. on the New York Mercantile Exchange. The contract dropped to $97.38 yesterday, the lowest close since Feb. 5. The volume of all futures traded was about 32 percent below the 100-day average for the time of day.

Brent for September settlement rose 78 cents, or 0.7 percent, to $105.39 a barrel on the London-based ICE Futures Europe exchange. It closed at $104.61 a barrel yesterday, the lowest since Nov. 7. The European benchmark crude was at a premium of $7.33 to WTI on the ICE. It closed at $7.23 yesterday.

Crude inventories dropped for a sixth week to 365.6 million barrels, said the EIA, the Energy Department’s statistical arm. It was the lowest level since Feb. 28.

Gasoline supplies fell the most since April 4. Gasoline futures climbed 4.72 cents, or 1.7 percent, to $2.7627 a gallon on the Nymex after sinking to a six-month low yesterday.