WTI Crude Trims Weekly Drop After Largest Slump in 7 Months

West Texas Intermediate (WTI) crude rebounded after the largest drop in 7 months on Thursday. Prices are headed for the first weekly decline since last month. Futures advanced as much as 0.6%, trimming the loss of the week to 2.3%. Oil is set for first weekly decline in 3 after United States Federal Reserve signaled it will be scaling back manufacturing shrank of China and economic stimulus at a rapid pace. West Texas Intermediate’s discount to Brent, London broadened after closing on Thursday at the smallest since 2011. For August delivery, WTI was at $95.54 a barrel in electronic trading on NYME (New York Mercantile Exchange) at 2:50 PM up 40 cents.

For August settlement, Brent was 48 cents higher at $102.63 a barrel on ICE Futures Europe, a London-based exchange. It decreased 3.7% or $3.97 to $102.15 on Thursday. European benchmark grade ended the session yesterday at premium of $7.01 to West Texas Intermediate futures, the narrowest since 2011. The spread is at $7.12 today. Chairman Ben S. Bernanke stated that U.S. Federal Reserve might start tapering bond purchases in 2013 and end them next year; should the economy continue to enhance. WTI (West Texas Intermediate) is a sweetish, light crude oil from America. Including through its low sulfur content, it is particularly suitable for gasoline production and petroleum refining. The price per barrel WTI oil usually corresponds to the light of North Sea grade Brent Crude; however, might vary slightly.