West Texas Intermediate crude rose for a second day on speculation a government report will show distillate inventories fell amid cold weather in the U.S., the world’s biggest oil consumer.
Futures gained as much as 0.7 percent in New York. Supplies of distillates, a category that includes heating oil and diesel, probably shrank by 2.5 million barrels last week, according to a Bloomberg News survey before data from the Energy Information Administration today. An industry report yesterday showed stockpiles slid 1.46 million. The second winter storm this week is moving into the U.S. Northeast.
“Distillate demand is likely to have remained healthy, supported by the run of frigid weather conditions in the U.S.,” Mark Pervan, the head of commodity research at Australia & New Zealand Banking Group Ltd., said in a note today. “Expectations are for a further fall in distillate inventories.”
WTI for March delivery advanced as much as 69 cents to $97.88 a barrel in electronic trading on the New York Mercantile Exchange, and was at $97.82 at 10:34 a.m. Sydney time. The contract rose 0.8 percent to $97.19 yesterday. The volume of all futures traded was about 56 percent below the 100-day average.
Brent for March settlement fell 26 cents, or 0.3 percent, to $105.78 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $8.59 to WTI.
U.S. crude stockpiles increased by 384,000 barrels last week, the American Petroleum Institute inWashington said. The EIA report may show they climbed by 2.55 million, according to the median estimate of 10 analysts in the survey.