June 9 (Bloomberg) -- West Texas Intermediate crude rose for a second day, following gains in Brent on signs of stronger global economic growth and on concern political tension in Libya may disrupt supplies.
WTI climbed as much as 1 percent and Brent advanced 0.9 percent. China’s exports rose more than analysts estimated in May, customs administration data showed yesterday. U.S. employment exceeded the pre-recession peak for the first time in May, the Labor Department said on June 6. Libya’s top court annulled the election of an Islamist-backed prime minister, deepening a political crisis in the North Africa oil producer.
“Chinese exports and last Friday’s U.S. payroll numbers are providing some support to oil,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The market still has its eyes on geopolitical risk. And when you throw in expectations that the global economy is improving, you are getting another round of the rally.”
WTI for July delivery gained 87 cents, or 0.9 percent, to $103.53 a barrel at 9:05 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 4.1 percent below the 100-day average.
Brent for July settlement increased 85 cents, or 0.8 percent, to $109.46 a barrel on the London-based ICE Futures Europe exchange. Volume was 24 percent above the 100-day average. The European benchmark crude traded at a premium of $5.93 to WTI. The spread closed at $5.95 last week.
China’s overseas shipments gained 7 percent last month from a year earlier, exceeding the 6.7 percent median forecast in a Bloomberg News survey. Imports fell 1.6 percent, leaving a $35.92 billion trade surplus, the biggest in five years, according to data compiled by Bloomberg.
U.S. payrolls expanded by 217,000 in May. That marked the fourth consecutive monthly increase in employment of more than 200,000, the first time that’s happened since early 2000.
In Libya, the Supreme Constitutional Court in Tripoli said the election of Ahmed Maetig by parliament was unconstitutional, Al-Nabaa television reported. Several violations of the national charter were recorded during the vote, and evidence will soon be made public, the court said.
Libya has been mired in unrest in the three years since the overthrow of Muammar Qaddafi, with the chaos halting the recovery of crude output and the country divided into virtual fiefdoms controlled by armed groups with competing interests. Oil production dropped to 180,000 barrels a day in May, down from 1.35 million a year earlier, according to data compiled by Bloomberg.