West Texas Intermediate oil climbed for a fifth day, capping the longest rally this year, as the U.S. economy grew at a faster pace than previously estimated in the fourth quarter.
Prices reached a six-week high as gross domestic product rose at a 0.4 percent annual rate, up from prior estimate of 0.1 percent, the Commerce Department reported today in Washington. Oil demand in the U.S., the biggest crude-consuming country, increased by the most since December in the seven days ended March 22, the Energy Information Administration said yesterday. WTI’s discount to Brent shrank to the smallest since July.
“GDP is better than earlier estimates and a strong economy is bullish for oil,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It looks like the spread will keep contracting.”
WTI for May delivery gained 65 cents, or 0.7 percent, to $97.23 a barrel on the New York Mercantile Exchange, the highest settlement since Feb. 14. The rally since March 21 was the longest since Dec. 20 and brought crude’s advance for the quarter to 5.9 percent.
SEA Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
