Oil Rises First Time in 3 Days; Brent Gap Widest in Year
Oil rose after a two-day slide as optimism that European finance ministers will make progress in taming the region’s debt crisis offset signs that crude supplies are excessive amid a global economic slowdown.
West Texas Intermediate crude gained as much as 1.5 percent after the European ministers welcomed Greece’s determination to cut spending and reshape its recession-wracked economy. The commitment improves chances that regional aid will keep flowing and stop Greece from abandoning the euro. U.S. oil supplies probably rose after crude production climbed to the highest level in more than 15 years and imports increased, a Bloomberg survey showed before an Energy Department report on Oct. 11.
“The continuing tension between bullish and bearish factors will keep oil trading in a range in the very short- term,” meaning for this month, said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London, who predicts Brent crude will slip to about $110 a barrel.
Crude for November delivery climbed as much as $1.32 to $90.65 in electronic trading on the New York Mercantile Exchange and was at $90.50 at 1:36 p.m. London time. The contract dropped to $89.33 yesterday, the lowest close since Oct. 3. Prices are down 8.4 percent this year.
Brent oil for November settlement gained $1.43, or 1.3 percent, to $113.25 a barrel on the London-based ICE Futures Europe exchange. Prices are up 5.5 percent this year.