WTI trades close to 16-month high on positive US data

By HY Markets Forex Blog

The Western Texas Intermediate was seen traded flat on Friday, after heading to a 16-month high and balanced for nearly four weeks, indicating signs of the U.S economy growth. While oil inventories have dropped for the third week.

The WTI September delivery were traded flat, with a 0.02% drop to $107.81 at the time of writing , while the Brent futures delivery on the ICE Futures  Europe Exchange went up by 7 cents to $108.77 per barrel.

The price gap between the Brent crude and WTI went down to its lowest since October 2010.

The US economic news and high market expectations pushed the New York’s NYMEX crude to its current highs. The better-than-expected increase in manufacturing activity pushed the oil prices higher.

The Labor market also showed improvement as data from the US labor department showed that the jobless claims dropped from 334,000 to 24,000 in two weeks ending July 12, indicating it’s lowest since May.

While Wednesday’s weekly reports released by the Energy Information Administration (EIA) showed a fall in the US crude inventories, lowest since January. New data released showed, stockpiles dropped by 6.9 million barrels to 367 million in the previous week ending July 12.

The most recent US Federal Reserve Beige Book data released on the Wednesday meeting, revealed that the world’s largest economy is growing at a moderate pace ,showing that the economy growth may be stable .

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