WTI Trades Near Two-Week High as U.S. Manufacturing Strengthens

West Texas Intermediate oil traded near the highest level in nine days and poised for a weekly advance as manufacturing grew last month in the U.S., the world’s biggest crude consumer.

Futures were little changed in New York after gaining the most in more than three weeks yesterday. The Institute for Supply Management’s U.S. factory index expanded at the fastest pace in two years in July, according to the Tempe, Arizona-based group. Libya’s head of oil security resigned as labor protests shut crude export terminals in the country.

WTI for September delivery was at $107.73 a barrel, down 16 cents, in electronic trading on the New York Mercantile Exchange at 10 a.m. Sydney time. The volume of all futures traded was 57 percent below the 100-day average. The contract increased $2.86, or 2.7 percent, to $107.89 yesterday, climbing the most since July 10 and the highest close since July 19. Prices are up 2.9 percent this week.

Brent for September settlement was 4 cents lower at $109.50 a barrel on the London-based ICE Futures Europe exchange. It rose $1.84 yesterday. The European benchmark contract was at a premium of $1.80 to WTI from $1.65 yesterday.

Colonel Ali Ahrash, the head of security for oil and gas infrastructure, has resigned, Deputy Oil Minister Omar Shakmak said yesterday in Washington. Libyan crude exports will drop by almost 80 percent after terminals were shut amid labor protests, Oil Minister Abdulbari Al-Arusi said July 31.

(Source: Bloomberg)