WTI Oil Trades Near Five-Month Low Before U.S. Stockpile Report

West Texas Intermediate traded near the lowest level in more than five months before government data forecast to show crude inventories rose to the highest since June in the U.S., the world’s biggest user.

Futures were little changed in New York after dropping 2.2 percent yesterday, the most since June 20. WTI’s discount to Brent increased for a third day to the widest gap in two weeks. U.S. crude stockpiles probably climbed 800,000 barrels last week, according to a Bloomberg News survey before a report from the Energy Information Administration tomorrow. Global oil markets are well-supplied, according to OPEC.

WTI for December delivery was was down 6 cents at $92.98 a barrel in electronic trading on the New York Mercantile Exchange at 11:14 a.m. Sydney time. The contract slid $2.10 yesterday to the lowest since May 31. The volume of all futures traded was about 69 percent below the 100-day average.

Brent for December settlement declined 59 cents to $105.81 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $12.77 to WTI, the widest gap since Oct. 30.

Global oil demand will increase by 1.04 million barrels a day, or 1.2 percent, in 2014 to average 90.82 million a day, the Organization of Petroleum Exporting Countries said in its monthly report yesterday, maintaining its previous estimate.

Inventories of crude and refined products in industrialized nations equated to 58 days of consumption in the third quarter, compared with an average of 52.1 days from 2003 to 2007, OPEC said in the report.

(Source: Bloomberg)