WTI Crude Rises for Second Day as U.S. Stockpiles Decline

West Texas Intermediate crude rose for a second day in New York, trading near its highest level in a week after U.S. stockpiles dropped the most this year.

Futures climbed as much as 0.8 percent after gaining 0.5 percent yesterday. U.S. crude supplies slid by 6.3 million barrels last week, the most since December, data from the Energy Information Administration showed yesterday. They were projected to decline by 800,000 barrels, according to a Bloomberg News survey. Monthly U.S. jobs data will be released tomorrow. The European Central Bank and Bank of England kept their benchmark interest rates unchanged.

“The weekly inventory data yesterday surprised quite a bit,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said by phone today. “We have the U.S. monthly job report tomorrow and central bank meetings today, so there’s potential for a bit of position squaring.”

WTI for July delivery advanced as much as 72 cents to $94.46 a barrel, and was at $94.27 a barrel, up 53 cents, in electronic trading on the New York Mercantile Exchange at 1:01 p.m. London time. The volume of all futures traded was 14 percent above the 100-day average. The contract rose 43 cents yesterday to $93.74, the highest close since May 28.

Brent for July settlement increased 16 cents to $103.20 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade was at a premium of $8.90 to WTI futures, down from $9.30 yesterday.

BFOE Loadings

The European Central Bank kept interest rates unchanged at a record low while improving confidence underscored President Mario Draghi’s timetable for an economic recovery later this year. The Bank of England maintained its benchmark interest rate and held its asset purchase plan in line with economists estimates.

Daily exports of North Sea Brent, Forties, Oseberg and Ekofisk crudes, which make up the Dated Brent benchmark, will increase by 7 percent in July from this month, loading programs obtained by Bloomberg News show.

U.S. gasoline inventories fell by 366,000 barrels last week, said the EIA, the Energy Department’s statistical arm. Stockpiles were projected to increase by 1 million barrels, according to the median estimate of 11 analysts in a Bloomberg survey. Distillate supplies, a category that includes heating oil and diesel, rose by 2.6 million barrels, compared with a forecast 1.4 million barrel gain in the survey.

Gasoline Inventories

Refineries operated at 88.4 percent of capacity, up 2 percentage points to the highest level since Jan. 4, the EIA said.

Supplies at Cushing, Oklahoma, the delivery point for WTI futures and the biggest oil storage hub in the U.S., dropped by 484,000 barrels last week to 50 million, according to the EIA data. They fell for the first time in four weeks.

Domestic crude production exceeded imports for the first time in 16 years, the EIA figures showed. Output increased 0.1 percent to 7.3 million barrels a day, while overseas purchases dropped 7 percent to 7.27 million a day.

Canada’s crude output will more than double to 6.7 million barrels a day by 2030, provided new pipelines such as Keystone XL are built to transport growing oil-sands production, an industry group representing the country’s petroleum producers said yesterday.

Crude from the oil sands, the largest component of Canadian output, will rise to 5.2 million barrels a day by 2030 from 1.8 million currently, the Canadian Association of Petroleum Producers said in its 2013 annual forecast. The group boosted its overall estimate for Canada by 500,000 barrels a day from a 2012 outlook.

Storm Andrea

Companies probably boosted payrolls by 165,000 workers last month, matching the gain in April, according to the median forecast from 69 economists surveyed by Bloomberg before a Labor Department report this week.

Tropical Storm Andrea poses the risk of tornadoes across central and southern Florida today, the U.S. National Hurricane Center said in an advisory. The storm, located about 160 miles (255 kilometers) west of Tampa, Florida, is moving north-northeast at 14 miles per hour and is expected to increase forward speed later today, the center said.

The Atlantic hurricane season began on June 1 and ends on Nov. 30. Forecasters are expecting more than 12 storms, the 30-year average, will form in the Atlantic this year. The eastern Pacific season began on May 15 and has already produced two storms off the west coast of Mexico.

Before it's here, it's on the Bloomberg Terminal.