(For Bloomberg fair value curves, see CFVL <GO>)
Aug. 28 (Bloomberg) -- West Texas Intermediate maintained gains after a government report showed that U.S. crude inventories advanced last week.
Futures rose after the Energy Information Administration said crude stockpiles increased 2.99 million barrels to 362 million. A 750,000-barrel gain was projected, according to the median of 12 analyst responses in a Bloomberg survey. Prices were also up on concern that conflict in Syria may spread and threaten oil supplies from the Middle East.
WTI crude for October delivery rose 88 cents, or 0.8 percent, to $109.89 a barrel at 9:33 a.m. on the New York Mercantile Exchange. The contract traded at $109.92 before the release of the report at 10:30 a.m. in Washington. Futures touched $112.24, the highest intraday price since May 3, 2011. Trading was 45 percent higher than the 100-day average.
Brent for October settlement advanced $1.19, or 1 percent, to $115.55 a barrel on the London-based ICE Futures Europe exchange. Futures reached $117.34, the highest intraday level since February. Volume was 79 percent above the 100-day average. The European benchmark crude traded at a $5.66 premium to WTI, up from $5.35 yesterday.
U.S. crude production increased 1.2 percent to 7.61 million barrels a day, the highest level since 1989. Output has surged as the combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies trapped in shale formations in the central part of the country.
--Editors: Richard Stubbe, Charlotte Porter