28.06.2013, 16:20

Oil rose

West Texas Intermediate headed for the third weekly gain in four on speculation that economic recovery in the U.S. and Germany will support fuel consumption.

Futures rose for a fifth day as U.S. consumers were more confident than forecast in June and German retail sales grew in May. WTI’s discount to Brent narrowed to the lowest level in more than two years as petroleum demand grew in the U.S. WTI is set for its first monthly advance this quarter, partly on renewed unrest in the Middle East could threaten supplies.

The Thomson Reuters final index of U.S. consumer sentiment was 84.1 in June. The median forecast in a Bloomberg survey called for 83 in the gauge after a preliminary reading of 82.7.

German sales adjusted for inflation and seasonal swings climbed 0.8 percent in May from April, according to the Federal Statistics Office in Wiesbaden. Economists had predicted an increase of 0.4 percent.

WTI for August delivery advanced 39 cents, or 0.4 percent, to $97.44 a barrel at 11:03 a.m. on the New York Mercantile Exchange after rising to $97.82, the highest intraday price since June 20. The volume of all futures traded was 4.2 percent lower than the 100-day average for the time of day. Futures are up 4 percent this week and little changed in the second quarter.

Brent for August settlement rose 30 cents, or 0.3 percent, to $103.12 a barrel on the London-based ICE Futures Europe exchange. Volume was 23 percent below the 100-day average. The European benchmark crude’s premium to WTI shrank to as little as $5.50, the least since January 2011.

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