Oil rose for a second day amid speculation crude stockpiles shrank last week in the U.S., the world’s biggest consumer of the commodity. Brent’s premium to New York futures narrowed to the lowest in three weeks.
Prices advanced as much as 1.1 percent before an Energy Department report tomorrow that may show oil supplies fell for a second week. London-traded Brent’s premium closed at the lowest since Aug. 23 yesterday after the Organization of Petroleum Exporting Countries said Libya will be able to restore most its oil output in six months.
Crude for October delivery climbed as much as $1.02 to $89.21 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.02 at 9:22 a.m. Singapore time. The contract yesterday increased 95 cents to $88.19. Prices are 15 percent higher the past year.
Brent oil for October settlement decreased 52 cents, or 0.5 percent, to $112.25 a barrel on the London-based ICE Futures Europe Exchange yesterday. The European benchmark contract closed at a premium of $24.03 to U.S. futures, the lowest since Aug. 23 and down from a record close of $26.87 on Sept. 6.
The Energy Department report may show crude inventories slid 3 million barrels last week, according to the median of 10 analyst estimates in a Bloomberg News survey. Gasoline supplies probably fell 500,000 barrels, the survey shows. The industry- funded American Petroleum Institute will report its own data today.
Libya Production
Full production from Libya may resume in 18 months, the Organization of Petroleum Exporting Countries said yesterday in its monthly report. The country may pump 1 million barrels a day in six months, OPEC said. It was producing about 1.6 million before fighting began between rebels and forces loyal to former leader Col. Muammar Qaddafi.
An oil tanker is sailing to the Libyan port of Mellitah, a sign the nation may be resuming energy exports after months of fighting that led to the ouster of Muammar Qaddafi, ship- tracking data compiled by Bloomberg show.
OPEC, responsible for about 40 percent of world crude supply, “marginally” lowered estimates for global oil consumption in 2012 and trimmed its 2011 assessment by 150,000 barrels a day. Demand will grow to 87.99 million barrels this year and 1.4 percent to 89.26 million a day in 2012.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
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