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)

Gold Holds Advance on U.S. Payrolls as Chinese Resume Purchases

Gold held gains after posting the biggest weekly advance in more than a month as U.S. jobs data missed estimates and Chinese buyers returned after the Lunar New Year break. Silver headed for its longest rally since August.

Bullion for immediate delivery traded at $1,266.60 an ounce at 9:25 a.m. in Singapore from $1,267.27 on Feb. 7, when prices capped a 1.8 percent increase in the best showing since the period to Jan. 3, as a rout in emerging markets spurred haven demand. Silver added 0.1 percent to $20.049 an ounce, set for a seventh day of gains.

Private and government data last week on U.S. employment growth trailed forecasts, sending the Bloomberg U.S. Dollar Index lower for a fifth day, as investors assessed the Federal Reserve’s plan to reduce stimulus. The dollar strengthened against 10 major peers today. Volumes for the benchmark contract on the Shanghai Gold Exchange climbed to a one-month high on Feb. 7, when the market reopened after a weeklong break.

Janet Yellen will speak before Congress tomorrow for the first time since being sworn in as Fed chairman last week, after the central bank said Jan. 29 it will trim monthly bond buying by $10 billion. Policy makers decided in December to cut purchases by the same amount as the economy improved, helping to end gold’s 12-year bull run.

Bullion for April delivery rose 0.3 percent to $1,266.10 an ounce on the Comex in New York, extending its biggest weekly advance in a month. A fourth day of gains would be the longest rally since August.

(Source: Bloomberg)

WTI Oil Trades Near One-Week Low as Crude Stockpiles Seen Rising

West Texas Intermediate traded near the lowest price in a week amid speculation crude inventories increased in the U.S., the world’s biggest oil consumer.

Futures were little changed in New York after slipping the most in almost a month yesterday as a manufacturing gauge in the U.S. dropped more than forecast. Crude stockpiles probably gained by 2.25 million barrels last week, according to a Bloomberg News survey before a report tomorrow from the Energy Information Administration.

WTI for March delivery was at $96.58 a barrel, up 15 cents, in electronic trading on the New York Mercantile Exchange at 12:43 p.m. Sydney time. The contract fell 1.1 percent yesterday, the second consecutive decline, to $96.43, the lowest settlement since Jan. 27. The volume of all futures traded was about 40 percent below the 100-day average. Prices are down 1.9 percent this year.

Brent for March settlement dropped 6 cents to $105.98 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $9.40 to WTI. It ended the session at $9.61 yesterday.

(Source: Bloomberg)