Black Gold Fluctuates Before Energy Inventory Report

Currently WTI is up $0.44…

“Oil traded near the lowest level in a week in New York after U.S. crude stockpiles gained and capacity on the Seaway pipeline was reduced.

West Texas Intermediate was little changed after dropping yesterday by the most in a month. Crude supplies rose by 3.2 million barrels last week, the biggest increase in six weeks, the industry-funded American Petroleum Institute said. An Energy Department report today may show inventories climbed by 2.2 million barrels, according to a Bloomberg News survey. London- traded Brent’s premium to WTI widened yesterday after Enterprise Products Partners LP (EPD) said capacity was limited on the Seaway link, curbing shipments from Cushing,Oklahoma, the delivery point for New York futures.

“The market could resume its move lower should the Energy Department report this afternoon confirm robust gains in U.S. crude inventories,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in an e-mail. Prices may decline to $93 a barrel, he said.

WTI crude for March delivery was at $95.43 a barrel, up 20 cents, in electronic trading on theNew York Mercantile Exchange at 11:57 a.m. London time. The contract dropped $1.45 yesterday, the most since Dec. 21, to the lowest closing level since Jan. 16. The average volume of all futures traded was 63 percent above the 100-day average.

Brent for March settlement was at $112.59 a barrel, down 21 cents, on the London-based ICE Futures Europe exchange. The number of futures traded was 35 percent higher than the 100-day average. The European benchmark contract was at a premium of $17.06 to WTI futures, down from $17.57 yesterday. The gap was $15.16 on Jan. 17, the narrowest in almost six months….”

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