BLOOMBERG


Crude Rebounds From Five-Month Low as Fuel Supplies Drop
By Morning Zhou - Nov 6 . 2013


West Texas Intermediate crude rebounded from the lowest level in five months as gasoline demand
rose to the most since July, trimming fuel inventories.


Prices advanced as much as 1.5 percent. The Energy Information Administration reported gasoline
consumption climbed 2.6 percent last week to 9.29 million barrels a day. Supplies decreased by 3.76
million barrels, more than nine times the 400,000-barrel decrease forecast by analysts in a
Bloomberg survey. Oil stockpiles jumped for a seventh week.


"The shocker number is the draw in gasoline," said Rich Ilczyszyn, chief market strategist and
founder of Iitrader.com in Chicago. "Demand is picking up and it's supportive for the market. Crude
oil is oversold."


WTI for December delivery advanced $1.39, or 1.5 percent, to $94.76 a barrel at 10:45 a.m. on the
New York Mercantile Exchange. The contract dropped to $93.37 yesterday, the lowest settlement
since June 4. It traded at $94.41 before the report. The volume of all futures traded was about 22
percent below the 100-day average.


Brent for December settlement increased 56 cents, or 0.5 percent, to $105.89 a barrel on the Londonbased
ICE Futures Europe exchange. It slid to the lowest level since July 2 yesterday. Volume was 5
percent below the loo-day average. The European benchmark crude was at a premium of $11.13 to
WTI, compared with $11.96 yesterday.


Gasoline Climbs
Gasoline futures rallied as much as 2.2 percent to $2.572 a gallon on the Nymex after settling at the
lowest level since December 2011 yesterday.


"You tend to see a little bounce after prices have been falling for a while," said Thina Saltvedt, an
Oslo-based analyst at Nordea Bank.


Inventories of distillate fuels, including diesel and heating oil, fell 4.9 million barrels to 117.8 million
in the week ended Nov. 1, the EIA, the Energy Department's statistical arm, reported.


Supplies of crude oil increased 1.58 million barrels to 385.4 million. Analysts forecast a gain of 2.1
million in crude inventories, according to the Bloomberg survey.


The U.S. will account for about 21 percent of global oil demand this year, compared with 11 percent
from China, the second-largest consuming country, according to forecasts from the International
Energy Agency.


WTI has lost 5.4 percent in the past six days. The relative strength index of front-month WTI futures
is below 3o for a fourth day, a sign that futures are due for a rebound.


To contact the reporter on this story: Morning Zhou in New York at mzhou29(&bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
®2013 BLOOMBERG L P ALL RIGHTS RESERVED .


FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE
FOR EVERYONE. OPTIONS, CASH AND FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT
NECESSARILY RESPOND IN THE SAME WAY TO SIMILAR MARKETS STIMULUS. A MOVEMENT IN THE
CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS
CONTRACT BEING OFFERED. SEASONAL DEMAND AND CURRENT NEWS IN COMMODITIES ARE
ALREADY REFLECTED IN THE PRICE OF THE UNDERLYING FUTURES.