WTI Oil Set for Second Weekly Gain Before GDP DataGrant Smith
West Texas Intermediate crude advanced, heading for a second weekly gain in New York after data showed the U.S. economy expanded the fastest in almost three years. Brent pared a weekly decline.
WTI futures climbed as much as 0.8 percent in New York, having slipped 0.3 percent earlier, and were poised for a weekly gain of 0.6 percent. U.S. gross domestic product grew 4.6 percent in the second quarter, the fastest rate since the last three months of 2011, Commerce Department data showed today in Washington. Saudi Arabia will keep supplies steady the rest of the year, a person with knowledge of the kingdom’s policy said.
“It was indeed a healthy GDP figure,” Michael Poulsen, an oil analyst at Global Risk Management Ltd. in Middelfart, Denmark, said by e-mail. “The U.S. economy looks to have a decent 2014.”
WTI for November delivery rose as much as 78 cents to $93.31 a barrel in electronic trading on the New York Mercantile Exchange, trading at $92.94 at 1:46 p.m. London time. It fell 27 cents to $92.53 yesterday. The U.S. benchmark crude was at a discount of $4.24 to Brent on ICE, compared with $6.74 at the end of last week.
Brent for November settlement was at $97.42 a barrel on the ICE Futures Europe exchange, up 42 cents. The contract gained 5 cents yesterday. The volume of all futures traded was about 30 percent below the 100-day average for the time of day. Prices slid 12 percent this year, and 1.1 percent this week.
The Organization of Petroleum Exporting Countries must make joint efforts to halt the recent slide in crude prices, Iranian Oil Minister Bijan Namdar Zangeneh said, state-run news agency Shana said on its website.
The increase in U.S. GDP matched the median forecast of 81 economists surveyed by Bloomberg and followed a 2.1 percent decline in the first three months of the year. Growth for the period had previously been estimated at previous estimate of 4.2 percent.