WTI Crude Rallies to a Record Buoyed by Supply Flop, Brent Gains

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WTI Crude Rallies to a Record Buoyed by Supply Flop, Brent Gains

West Texas Intermediate surged to the highest intraday point in 30 days following industry report showing crude stockpiles dropped in the US, the biggest consumer of oil in the world. Brent crude advanced in the face of mayhem in Ukraine and Libya.

July futures ascended as high as 0.9% in New York. Crude supplies dropped by 10.3 million barrels last week, according to a report by the American Petroleum Institute. Inventories may have been flat around a record peak, a Bloomberg News survey showed ahead of government data on Wednesday.

Citigroup Inc adjusted upwards its price outlook for Brent, mentioning increased risks from the tension in Ukraine and shipments uncertainty in various markets including Libya, Bloomberg reported.

The API “reported a very large drop in crude oil imports leading to a huge crude oil stock draw. It will be interesting to see the import breakdown” in the government data today,” said Olivier Jakob from Switzerland-based Petromatrix GmbH.

In digital trading on the New York Mercantile Exchange, WTI for July delivery climbed 92 cents to $103.25 per barrel, the highest intraday exchange rate since April 22. The contract stood at $103.22 as of 12:52 am in London. Futures traded at a volume 52% higher than the average for the past 100 days, for that time of the day.

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The per-barrel price of July-settlement Brent added 37 cents at $110.06 on the ICE Futures Europe exchange in London. On the ICE, the European crude exchanged at a premium of $6.86 to WTI.

Invezz reported that analysts polled by Reuters expected EIA data to show stockpiles added 600,000 barrels last week.

The API showed yesterday inventories at Cushing, Oklahoma, the delivery hub for contracts traded in New York, lost 261,000 barrels last week. Refinery activity advanced to an average of 90.3% of full potential, according to the Washington-based group.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com