WTI Crude Snaps Three-Day Gain Amid Signs Fuel Stockpiles Rose

West Texas Intermediate crude snapped three days of gains after an industry report showed U.S. fuel stockpiles increased last week.

WTI slipped as much as 0.3 percent after advancing 3.3 percent since Aug. 8. The American Petroleum Institute yesterday said distillate fuel inventories climbed 1.1 million barrels while gasoline stockpiles rose 1.7 million, according to two people familiar with the data. The Energy Information Administration, the Energy Department’s statistical arm, is scheduled to release its inventory report today.

WTI crude for September delivery fell as much as 36 cents to $106.47 a barrel on the New York Mercantile Exchange and was at $106.52 at 7:16 a.m. in Singapore. The contract settled yesterday at $106.83, the highest close since Aug. 2. The volume of all futures traded was 76 percent below the 100-day average.

Brent oil for September settlement climbed 85 cents, or 0.8 percent, to end the session at $109.82 a barrel on the London-based ICE Futures Europe exchange yesterday. It was the highest closing price since April 2. The European benchmark traded at a $2.99 premium to WTI, up from $2.86 Aug. 12.

U.S. crude supplies dropped 999,000 barrels last week, the American Petroleum Institute said, according to the people. Data from the Washington-based EIA today is forecast to show they fell 1.5 million barrels, according to a Bloomberg News survey of 11 analysts. Gasoline stockpiles slipped 1.6 million barrels and distillate inventories increased 1 million in the survey.

API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the EIA for its weekly survey. The industry-funded API began releasing its weekly supply statistics on a subscription basis last month.

(Source: Bloomberg)