West Texas Intermediate oil rose after a government report showed that U.S. crude inventories dropped as refineries bolstered operating rates. Brent futures advanced in London.
WTI increased as much as 2 percent and Brent 1.3 percent. Stockpiles fell 3.69 million barrels to 379.3 million in the week ended Nov. 28, the Energy Information Administration said. A 1.75 million-barrel gain was projected, according to the median estimate in a Bloomberg survey of eight analysts. Refineries boosted operating rates for a fifth straight week while fuel supplies rose.
The global benchmark oils fell 18 percent last month after the Organization of Petroleum Exporting Countries maintained its output target at 30 million barrels a day, opting to let low oil prices force U.S. shale producers to cut supply. Saudi Arabia won’t give up market share “at this time for anybody,” said Prince Turki Al-Faisal, the kingdom’s former intelligence chief.
“The jump in refinery activity is the connection that makes the rest of the numbers understandable,” Tim Evans, an energy analyst at Citi Futures Perspective in New York, said by phone. “Increasing refinery runs that are responsible for the drawdown in crude stockpiles and the builds in both gasoline and distillate inventories.”