“Oil switched between gains and losses in London amid signs of rising inventories in the U.S., the world’s biggest crude-consuming nation.
Brent futures were little changed after adding 0.5 percent yesterday. U.S. crude supplies increased 2.4 million barrels last week, according to the American Petroleum Institute. An Energy Department report today may show inventories rose 2 million barrels, a Bloomberg News survey of 11 analysts showed. Gasoline and distillate stockpiles also climbed, the API said.
“Inventories will likely rise in the spring,” said Andy Sommer, a senior oil analyst at Axpo Trading AG in Dietikon, Switzerland, who predicts Brent will remain at about $110 this month. “Supply and demand in the market are pretty much balanced, with a slight deficit, but that is a normal seasonal pattern. We see downside risk once we come into the spring.”
Brent for February settlement on the London-based ICE Futures Europe exchange increased 13 cents to $112.07 a barrel as of 1:06 p.m. local time. The North Sea crude was at a premium of $18.86 to U.S. benchmark, West Texas Intermediate. The spread widened for the first time in four days yesterday to $18.79.
WTI crude for February delivery was at $93.23 a barrel, up 8 cents, in electronic trading on theNew York Mercantile Exchange. The contract settled at $93.19 on Jan. 7, the highest since Sept. 18. Prices dropped 7.1 percent last year for the first decline in four years.
