West Texas Intermediate crude advanced to the highest level in almost five weeks as U.S. orders for durable goods climbed more than forecast in February. WTI's discount to Brent was the narrowest since July.
Futures gained for a third day after the Commerce Department said bookings for goods meant to last at least three years rose the most since September. The spread between WTI and Brent, Europe's benchmark, has shrunk as U.S. refinery demand and North Sea output have increased.
“The durable goods number is higher than expected and it shows the U.S. economy is on good footing,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors.
Eoin Treacy's view Crude oil remains the most important commodity in the world and despite medium to long-term prospects of lower pricing in real terms, the short term outlook is skewed towards firming.
WTI Crude exhibits a triangular pattern over the last year as it rallies back to test the psychological $100 area. A clear downward dynamic would be required to check current scope for additional upside.
Brent crude oil has been ranging mostly between $105 and $130 since early 2011 and found support this week at the lower boundary. A clear downward dynamic would be required to question potential for a further rebound.