Gasoline rose after the American Petroleum Institute reported that supplies of crude and gasoline declined last week.
TransCanada Corp. expects to begin delivering oil Jan. 3 to Texas on the southern portion of its Keystone pipeline, allowing more crude to leave a key delivery hub in Oklahoma.
Gasoline advanced as supplies in the New York Harbor area, where the Nymex contract is delivered, are the lowest in 11 months.
Thunder Horse crude on the U.S. Gulf Coast rose the most in almost nine months against West Texas Intermediate as the domestic benchmark lost ground to Brent.
West Texas Intermediate traded near the lowest price in almost six months and at the steepest discount to Brent since March, as crude stockpiles climbed for a 10th week in the U.S. and production rose.
Gasoline futures gained in New York as consumer sentiment rose and U.S. jobless claims fell to a two-month low.
Crude options volatility rose as the underlying futures tumbled to the lowest level in almost six months on increasing U.S. stockpiles and production.
Ultra low sulfur diesel rose on speculation that U.S. distillate inventories fell last week to a five-year low.
Gasoline futures headed for a fourth consecutive decline after an industry report showed supplies rose last week.
Gasoline and ultra-low sulfur diesel rose, following Brent crude higher as protests in Libya disrupted oil exports.
"Prices are reacting to the API inventories, which showed a surprise build in gasoline."
- Andy Lipow on Nov 20, 2013