Oil Trades Near Three-Month High as U.S. Gasoline Supplies Fall

Oil traded near the highest level in three months as rising U.S. gasoline demand trimmed supplies of the fuel to the lowest since January.

Futures were little changed in New York after gaining 4.9 percent Wednesday. Consumption of the fuel was at the highest level since September the past four weeks, reducing gasoline inventories for a third week, according to data from the Energy Information Administration. U.S. output was steady while stockpiles expanded, keeping supplies at the most since 1930. Nigerian oil exports are set to drop to a two-year low after a terminal shutdown.

Oil has recouped its losses this year after slumping to a 12-year low last month amid speculation stronger demand and falling U.S. production will ease a supply glut. The time and date of a meeting among major producers including Saudi Arabia to discuss freezing output remains uncertain, Russian Energy Minister Alexander Novak said, according to a report from Interfax.

West Texas Intermediate for April delivery was at $38.20 a barrel on the New York Mercantile Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, down 9 cents, at 7:45 a.m. Hong Kong time. The contract gained $1.79 to $38.29 on Wednesday, the highest close since Dec. 4. Total volume traded was about 72 percent below the 100-day average.

Brent for May Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term climbed $1.42, or 3.6 percent, to $41.07 a barrel on the London-based ICE Futures Europe exchange on Wednesday, also the highest close since Dec. 4. The European benchmark crude ended the session at a premium of $1 to WTI for May.

To contact the reporter on this story: Ben Sharples in Hong Kong at bsharples@bloomberg.net. To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net, Aaron Clark

By: Ben Sharples

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