Aug. 15 (Bloomberg) -- Brent and West Texas Intermediate crudes advanced after Ukraine said its forces attacked a convoy entering the country from Russia.
Ukrainian troops destroyed “part” of a military column that came from Russia through the rebel-held border post of Izvaryne, Andriy Lysenko, spokesman for Ukraine’s military, told reporters in Kiev. Brent dropped to the lowest level since June 2013 yesterday while WTI settled at a six-month low amid signs of weaker demand and ample global oil supplies.
“When there’s the prospect of ground war in Europe you don’t want to be short oil,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $2.6 billion, said by phone. “Prices have already fallen a lot and the market was ready for a rebound.”
Brent for October settlement climbed $1.35, or 1.3 percent, to $103.42 a barrel on the ICE Futures Europe exchange in London at 11:07 a.m. in New York. The September contract expired at $102.01 yesterday, the lowest close for a front-month contract since June 26, 2013.
WTI for September delivery rose $1.07, or 1.1 percent, to $96.65 a barrel on the New York Mercantile Exchange. Futures are poised for a 1 percent weekly loss. The contract dropped to $95.58 yesterday, the lowest settlement since Jan. 21.
The European benchmark crude traded at an $8.68 premium to the October WTI contract.
The 14-day relative strength index for WTI ended trading at 28.0161 yesterday, according to data compiled by Bloomberg. Investors typically start buying contracts when the reading is below 30, a sign a market is oversold.