Bloomberg (28/10) -- Oil rose for a third day in New York as Libyan
output fell and on speculation that the U.S. Federal Reserve will
maintain the pace of stimulus. Brent oil headed for the biggest gain in
more than two weeks.West Texas Intermediate advanced as much as 1
percent after state-run National Oil Corp. said crude production in
Libya, holder of Africa’s largest reserves, declined to about 250,000
barrels a day because of labor protests. The Federal Open Market
Committee, starting a two-day meeting tomorrow, is likely to delay
reducing, or “tapering,” monthly bond purchases until March, according
to a Bloomberg survey of economists. Brent rose as much as 2.2 percent.“The
Libyan production drop is the main driver and is also the reason why
Brent is stronger,” said Jacob Correll, a Louisville, Kentucky-based
commodity analyst at energy management firm Schneider Electric
Professional Services. “There’s a growing belief that the Fed will agree
to keep the full-bore bond buying program. The outlook for tapering
anytime soon is fading.”WTI for December delivery gained 59
cents, or 0.6 percent, to $98.44 a barrel at 11:34 a.m. on the New York
Mercantile Exchange. Futures touched $95.95 Oct. 24, the lowest intraday
level since June 27. The volume of all futures traded was 27 percent
below the 100-day average.Brent oil for December settlement rose
$2.09, or 2 percent, to $109.02 a barrel on the London-based ICE
Futures Europe exchange. Volume was 4.5 percent higher than the 100-day
average. The European benchmark crude traded at a $10.58 premium to WTI,
up from $9.08 on Oct. 25. The spread widened to $13.37 on Oct. 23, the
most in six months on an intraday basis.
