“West Texas Intermediate crude rose to narrow its discount versus Brent to the lowest level in eight months. The European benchmark was headed for a second weekly decline.
WTI advanced as much as 0.6 percent, paring its first weekly decline in three, as the euro strengthened against the dollar amid speculation the banking crisis in Cyprus will be contained. Cypriot lawmakers start a debate today on ways to unlock bailout funds to avoid a financial collapse. Libya shut two oil fields because of fighting, according to a report yesterday from the state LANA news agency.
“We do not think that risk appetite has necessarily deteriorated,” said Harry Tchilinguirian, head of commodity- markets strategy at BNP Paribas SA in London, who forecasts that Brent will average $114 a barrel this quarter. “Once the Cyprus issue is resolved and ultimately it will have to be resolved,” crude is likely to strengthen, he said.
WTI for May delivery gained as much as 57 cents to $93.02 a barrel in electronic trading on theNew York Mercantile Exchange, and was at $92.99 at 11:13 a.m. London time. The volume of all futures traded was 49 percent below the 100-day average. The contract slid $1.05 to close at $92.45 yesterday. Prices are down 0.5 percent this week.
Brent for May settlement was at $107.63 a barrel, up 16 cents, on the London-based ICE Futures Europe exchange. The volume of all futures traded was 2 percent above the 100-day average for the time of day. The grade has lost 2 percent this year. The European benchmark’s premium to WTI fell as low as $14.57, the narrowest since July.
