2014.07.2123:16:33UTC+00Oil supplies bring WTI near highest in 3 weeks

Oil supplies bring WTI near highest in 3 weeks

WTI is approaching a three week high right before new supply data showing a growth in demand is set to be released this week.

Futures in August for the American benchmark were mostly unchanged today after climbing by 1.4% to a price of $104.59 per barrel on the New York Mercantile Exchange yesterday. A barrel of WTI, whose delivery date expires today, was trading at $104.51 approaching noon Sydney time. Contracts for September were down as well to $102.88 after losing 8 cents. WTI prices have so far increased by 6.2% in 2014.

An incoming report from the Energy Information Agency (EIA) due tomorrow is expected by the results of a Bloomberg News survey to show that crude stockpiles declined by 2.8 million barrels last week. The current month is in the middle of the traditional US peak season for oil and gasoline. Resource analyst David Lennox from Sydney’s Fat Prophets says that, “We’re now deep into drive time and all the numbers look like it’s been a reasonable season, but there’s been adequate supply to cover it.”

The possibility of more sanctions levied on Russia for their role in the downing of the Malaysian Airlines jet last week is also playing a role should energy markets be included.

Gasoline stockpiles in the US, the world’s top consumer of oil, are seen to have expanded last week by 1 million barrels says analysts surveyed by Bloomberg. Distillate products such as diesel and heating are oil are likely to have expanded as well by 2 million. Official numbers will be known later today when Washington’s American Petroleum Institute releases their own supply report.

The European benchmark Brent for September similarly declined by 6 cents to $107.62 per barrel. It held its smallest premium over WTI since April 11 yesterday at $4.82 and had a spread of $4.86 today.