WTI Trades Near Six-Week High as U.S. Fuel Supplies Seen Falling

West Texas Intermediate crude traded near the highest price in six weeks amid speculation that U.S. distillate stockpiles declined as cold weather boosted demand for heating fuels in the world’s biggest oil consumer.

Futures were little changed in New York after advancing for a fifth day yesterday. Distillate inventories, including heating oil and diesel, probably fell by 2.13 million barrels last week, according to a Bloomberg News survey of analysts before an Energy Information Administration report tomorrow. A winter storm may spread snow and sleet across the nation’s south, the U.S. National Weather Service said.

WTI for March delivery was at $100.05 a barrel in electronic trading on the New York Mercantile Exchange, down 1 cent, at 12:50 p.m. Sydney time. The contract rose 18 cents to $100.06 yesterday, the highest close since Dec. 27. The volume of all futures traded was about 55 percent below the 100-day average. Prices are up 1.7 percent this year.

Brent for March settlement was at $108.74 a barrel, up 11 cents, on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $8.69 to WTI. The difference narrowed for the first time in four days yesterday to close at $8.57.

(Source: Bloomberg)