WTI Crude Rises to Near Five-Week High on Economic Rebound...

WTI Crude Rises to Near Five-Week High on Economic Rebound Signs
By Grant Smith - Mar 26, 2013 10:47 PM ET

West Texas Intermediate crude advanced to trade near its highest level in five weeks before reports forecast to show signs of economic recovery in the U.S.

Futures climbed as much as 0.8 percent. U.S. durable-goods orders probably increased in February by the most in five months, while sales of new homes posted the best back-to-back performance in four years, economists said before reports today. WTI slipped earlier on estimates that U.S. crude stockpiles increased by 1.4 million barrels to 384.1 million last week, the highest since June.

“The U.S. is showing signs of improving,” said Thina Saltvedt, an analyst at Nordea Bank AG in Oslo. “We will see the momentum in the world economy reach a bottom in the second quarter, and then increase, which should be positive for oil the oil demand outlook.”

WTI for May delivery climbed as much as 77 cents, or 0.8 percent, to $95.58 a barrel in electronic trading on the New York Mercantile Exchange, and traded for $95.45 at 11:32 a.m. in London. The volume of all futures traded was 12 percent below the 100-day average for the time of day. The contract rose as high as $95.65 yesterday, its strongest intraday level since Feb. 20.

Brent for May settlement rose 10 cents to $108.27 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 46 percent above the 100-day average. Prices are down 2.5 percent in 2013. The European benchmark crude’s premium to WTI was at $12.87. It closed at $13.36 yesterday, the lowest closing level since July.