WTI Crude Higher, Brent/WTI Spread narrowing

West Texas Intermediate crude rose for a third day as speculation the Federal Reserve will maintain economic stimulus boosted the outlook for demand in the world’s biggest oil user. Brent’s premium to WTI narrowed.

Futures advanced as much as 0.9 percent in New York. Purchases of newly built U.S. homes fell the most in more than three years last month, Commerce Department data showed Aug. 23. Fed Bank of St. Louis President James Bullard said the bank should pledge not to raise the benchmark interest rate as long as inflation is below 1.5 percent. Brent’s premium shrank a third day as Libya resumed exports from Brega as protests eased.

WTI for October delivery climbed as much as 95 cents to $107.37 a barrel in electronic trading on the New York Mercantile Exchange and was at $107.01 at 9:44 a.m. Sydney time. The contract climbed $1.39, or 1.3 percent, to $106.42 on Aug. 23, the biggest gain since Aug. 9.

Brent for October settlement advanced 21 cents to $111.25 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $4.24 to WTI, from $4.62 on Aug. 23.

Bloomberg

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