Oil rose in New York, adding to two weeks of gains,
before a report that may show signs of economic improvement in the U.S., the
world’s biggest crude consumer.
Futures climbed as much as 0.9 percent,
extending a 1.6 percent advance last week. Retail
sales probably increased 0.3 percent in July for the
first rise in four months. Prices gained even as European and U.S. stock
futures declined and most Asian shares fell on slowing growth in Japan. Israel
will hold home defense drills this week amid reports
by the Haaretz daily that the country is considering
striking Iran over its nuclear program.
Crude for September delivery rose as much as 87
cents to $93.74 a barrel in electronic trading on the New York Mercantile
Exchange. It was at $93.20. The contract fell 49 cents to $92.87 on Aug. 10.
Prices are 5.9 percent lower since the start of the
year.
Brent oil for September settlement on the
London-based ICE Futures Europe exchange climbed as much as $1.33, or 1.2 percent, to $114.28 a barrel. The more-actively traded
October contract was up 35 cents at $111.46 a barrel. The European benchmark
crude was at $20.45 above New York-traded West Texas Intermediate grade. The
premium was $20.08 on Aug. 10, the highest since April.
The spread between the two varieties has widened
amid maintenance shutdowns at North Sea fields that are the physical basis of
the Brent futures contract. BP Plc (BP/) on Aug. 10
said it will close its Ninian Pipeline System in the
area for 10 days.
The U.S. Navy yesterday said one of its
guided-missile destroyers collided with an oil tanker near the Strait of Hormuz,
a transit route for about a fifth of global crude shipments. The USS Porter hit
the Panamanian-flagged M/V Otowasan at about 1 a.m.
local time, said Bahrain-based U.S. 5th Fleet spokesman Lieutenant Greg Raelson. The incident was not combat-related and damage to
the ship was being evaluated, he said.