According to a survey the crude inventories of the US dropped to 377.8 million barrels in the seven days ended Nov. 29 which is in fact the first decline in 10 weeks. It has had led to an increase in the prices of WTI crude which advanced for a fourth day which is the longest rising streak since August 2013.
The survey shows that supplies are projected to have slid by 500,000 barrels. Moreover, as TransCanada Corp. will start part of its Keystone XL pipeline next month and U.S. crude inventories fell, the WTI Crude prices are expected to increase this week. The crude prices will get further impetus from the fact that the spread between WTI and Brent shrank to a nine-day low.
Oil Futures Climb in New York
The latest data available shows that the oil futures climbed as much as 1.6 percent in New York amidst the news coming from the American Petroleum Institute that crude stockpiles shrank by 12.4 million barrels last week. Nonetheless, the oil prices are gaining up the most since September to a great extent.
Earlier, TransCanada informed the media that it will begin the southern portion of the pipeline to the Gulf Coast which in all probabilities could further enhance supply of crude. Additionally, OPEC is forecast to keep its production quota unchanged at a meeting in Vienna today which will solve the problem of over supplies which have led to fall in crude prices.
Decline in Crude Stockpiles in the U.S.
A major reason behind the increase in the WTI crude prices is that the there is a slight decline in the US crude oil stocks. Nonetheless, WTI for January delivery increased as much as $1.49 to $97.53 a barrel in electronic trading on the New York Mercantile Exchange. Earlier it was at $97.32 as of 11:45 a.m. London time.
Additionally, there was a slight increase in the contract as it increased $2.22 to $96.04 yesterday. Moreover, there is the highest close since Oct. 31 which is expected and sending the right signals to investors. Observers believe that the volume of all futures that traded was 99 percent more than the 100-day average; the prices will be stable for some more time.
On the other hand, Brent for January settlement was down 45 cents at $112.17 a barrel on the London-based ICE Futures Europe exchange.
To contact the reporter of this story: Jonathan Millet at email@example.com