Benchmark price of crude oil the United States (U.S.) West Texas Intermediate (WTI) near the highest price in a week, because the data may show U.S. crude stockpiles shrank. Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) will not raise its production quotas.
A report might Energy Information Administration showed crude supplies fell for a third week, its longest losing streak this year. On the other hand, OPEC will maintain production quota at 30 million barrels per day.
“We see inventory report for the week and that will tell us how U.S. consumers really need oil. Market also tends to focus on the upcoming OPEC meeting, and from there will not be any change,” said Fat Prophets analyst David Lennox.
WTI for July delivery fell 16 cents to USD94, 85 per barrel in electronic trading on the New York Mercantile Exchange. Trading volume that occurred was 45 percent below the average of 100 trading days. Prices are up 1.5 percent this month after losing 3.9 percent in April.
While Brent for July delivery was down 5 cents at USD104, 18 per barrel on the ICE Futures Europe exchange, based in London. As a result, the disparity Brent and WTI rose to USD9, 31 per barrel of USD9, 22 per barrel.
U.S. crude stockpiles probably fell 750 thousand barrels last week. Gasoline supplies probably fell 650 thousand barrels last week. Distillate stocks, including heating oil and diesel, are expected to increase 150 thousand barrels.