Futures for the North American WTI crude rebounded on Monday following the crude’s biggest weekly drop in 16 months, dragged lower by analysts forecast which revealed a rebound in the service industries in the US, the world’s largest oil consumer.
WTI for February delivery rose 0.10% higher, trading at $94.06 per barrel on the New York Mercantile Exchange at the time of writing. On January 3, the contract dropped 1.6% lower to $93.96, the lowest since Dec 2.
The European benchmark Brent crude for February settlement rose 0.19% higher at $107.10 per barrel on the ICE Futures Europe exchange at the same time. Brent crude was at a premium of $13.03 to WTI.
The Institute for Supply Management’s (ISM) non-manufacturing data for December is expected to be released later in the day, with predictions of a rise to 54.5 points according to analysts. On Friday, the Energy Administration data revealed the US distillate stockpiles rose above analysts’ forecasts while the crude output advanced to the highest level since 1988.
WTI Crude – Libya
Libya has restarted its largest oil fields, El Sharara on Monday, with an initial output of 60,000 barrels a day after protesters in the area agreed to end their blockade which has been disrupting production in the country for weeks, the state National Oil Corp (NOC) confirmed.
Production in Libya dropped to 250,000 barrels a day, down from 1.43 million barrels per day in July 2012.
WTI Crude – US Economy
The US distillate stockpiles, which includes diesel and heating oil, rose by 5.04 million barrels to 119.1 million in the week ended December 27, according to the Energy Administration data. Rising above analysts forecast of a rise by 750,000 barrels.
According to forecasts, the ISM’s non-manufacturing index is expected to show a rise of 54.5 points, rebounding from the previous reading of 53.9 seen in November.
Gasoline inventories added 844,000 barrels to 220.7 million, rising above the forecasted climb of 1.38 million.
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