by Rozhnov - Jun 6, 2013 2:25 PM GMT+0200
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.
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WTI Crude Rises for Second Day as U.S. Stockpiles Decline - Bloomberg
by Zhou - Jun 6, 2013 3:21 PM GMT+0200
West Texas Intermediate crude rose as the euro strengthened to a four-week high against the dollar after European Central Bank President Mario Draghi said euro zone economic growth should stabilize.
Oil advanced as the euro gained for a fourth day. The euro-area economy should stabilize and recover at a subdued pace in the course of the year, Draghi said at a press conference after a meeting in which the bank kept its interest rates at a record low. Fewer Americans filed applications for unemployment benefits last week, the Labor Department said.
“Once again Draghi’s words are more powerful than the sword and he is charming the market up,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “Whenever he talks, the euro seems to listen, and oil is following the euro.”
WTI for July delivery increased 69 cents, or 0.7 percent, to $94.43 a barrel at 9:12 a.m. on the New York Mercantile Exchange. London time. The volume of all futures traded was 7 percent above the 100-day average.
Brent for July settlement slid 3 cents to $103.01 a barrel on the London-based ICE Futures Europe exchange. Volume was 24 percent below the 100-day average for the time of day. The European benchmark grade’s premium over WTI narrowed to $8.58 from from $9.30 yesterday.
Rate Unchanged
The ECB’s Governing Council today left its main refinancing rate at 0.5 percent after reducing it by a quarter point last month, as predicted by 57 of 59 forecasts in a Bloomberg News survey of economists. Draghi said that policy makers discussed taking the ECB’s deposit rate below zero before leaving it at zero.
“The ECB kept rates unchanged and said they are going to keep things accommodative,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The dollar is under pressure. Oil is trying to make another high.”
The euro strengthened as much as 0.6 percent to $1.3166, the highest level since May 9. A stronger euro and weaker dollar increase dollar-denominated oil’s appeal as an investment alternative.
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Oil Rises for Second Day as Euro Gains on Draghi Comments - Bloomberg
