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Oil gains as fuel supply drop offsets crude inventory increase
[SYDNEY] Oil rose for a second day after declines in US fuel supplies offset the first nationwide oil stockpile gain since August.
Futures rose as much as 0.7 per cent in New York after climbing 0.5 per cent Thursday. Crude stockpiles rose 4.85 million barrels last week, according to the Energy Information Administration. Supplies at Cushing, Oklahoma, the delivery point for US oil futures, fell 1.32 million barrels to the lowest level this year. Gasoline and distillate inventories dropped as refineries processed less crude.
Oil has fluctuated near US$50 a barrel as traders speculate whether Opec will act on plans to curb output. Russia has said it's ready to participate with the group in a "technical exchange" later this month in Vienna to set a road map for production, while an Organization of Petroleum Exporting Countries committee will try to resolve differences over how much individual members should pump.
West Texas Intermediate for November delivery rose as much as 36 US cents to US$50.80 a barrel on the New York Mercantile Exchange and was US$50.60 at 10:02am in Sydney.
Brent for December settlement rose 22 US cents to US$52.03 a barrel on the London-based ICE Futures Europe exchange on Thursday. The global benchmark closed at a US$1.18 premium to December WTI.