Oil Near Three-Month Low on Speculation U.S. Stockpiles Rose
Oil traded near a three-month low in New York before a report forecast to show that stockpiles gained amid surging U.S. production.
Futures were little changed after dropping 2.3 percent yesterday, the biggest decline since Sept. 19. The Energy Department will show in a report today that U.S. crude supplies climbed for a third week, according to a Bloomberg News survey of analysts. The industry-funded American Petroleum Institute reported yesterday that oil inventories increased by 313,000 barrels last week to 369.6 million.
Crude for December delivery was unchanged at $86.67 a barrel in electronic trading on the New York Mercantile Exchange at 8:38 a.m. in Tokyo. The contract fell $2.06 yesterday to its lowest close since July 10 and is down 12 percent this year.
Brent oil for December settlement dropped $1.19, or 1.1 percent, to end yesterday’s session at $108.25 a barrel on the London-based ICE Futures Europe exchange. The European benchmark’s premium to the New York-traded West Texas Intermediate grade widened to $21.58.
Today’s Energy Department report will probably show that U.S. crude supplies increased after output climbed to the highest level in more than 17 years, according to the median of 11 analyst estimates in a Bloomberg survey.
Crude inventories rose by 1.8 million barrels in the week ended Oct. 19, the survey showed. A gain of that size would leave stockpiles at the highest level since July. Gasoline supplies climbed 500,000 barrels, the analysts forecast.
Stronger U.S. economic data later this week may spur a rally in oil prices, said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant. The Commerce Department is projected to report that U.S. new home sales and house prices increased in August, according to a Bloomberg survey of analysts.
Orders for durable goods in the U.S. rose 7 percent last month, according to a Bloomberg survey of economists conducted before tomorrow’s report from the Commerce Department. The department may say on Oct. 26 that gross domestic product grew at a 1.8 percent annual pace in the three months ended Sept. 30, up from 1.3 percent the previous quarter, economists forecast.
To contact the editor responsible for this story: Alexander Kwiatkowski at email@example.com
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.