West Texas Intermediate rose to the highest in almost two weeks on speculation stronger U.S. economic growth will boost demand for oil. WTI’s discount to Brent narrowed to a one-year low.
Futures climbed 1.1 percent after a government report showed consumer spending in the U.S. rebounded in August. Gasoline advanced for the fourth time in five days on concern refinery shutdowns will reduce production. Both WTI and Brent are headed for their biggest quarterly loss in more than two years as supply gains shield the market from the U.S.-led military campaign against Islamic State.
“The fact that the U.S. economy looks bullish and the gasoline price is elevated is pulling up oil prices,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts.