Oil Trades Near Two-Week High on Tighter Supply, Mideast Risks - Bloomberg

Oil Trades Near Two-Week High on Tighter Supply, Mideast Risks - Bloomberg:

Oil traded near a two-week high in New York amid signs of a further drop in U.S. stockpiles and ongoing concerns that political friction in the Persian Gulf could disrupt exports.

Futures rose as much as 1.1%. American crude inventories dropped by 6.02 million barrels last week, according to an industry report. If confirmed by government data on Wednesday, it will be a seventh weekly decline. BP Plc is avoiding sending ships through the Strait of Hormuz, Chief Executive Officer Bob Dudley said Tuesday, in a sign Middle East tensions could affect the flow of crude. Libya’s oil production dropped to the lowest in five months after an issue with a pipeline connected to its biggest field.

West Texas Intermediate for September delivery rose as much as 62 cents to $58.67 a barrel on the New York Mercantile Exchange, and traded at $58.65 as of 8:47 a.m. local time. Prices are up for a fifth day, after climbing 2.1% on Tuesday, the biggest gain since July 10.

Brent crude for September, which expires Wednesday, added 54 cents to $65.26 a barrel on the ICE Futures Europe exchange, after rising 1.6% on Tuesday. The more-active October contract was at $65.19, up 56 cents. The September contract traded at a $6.85 premium to WTI for the same month.