Diesel sank for a fourth day in New York after a government report showed distillate imports surged to the highest since 2010 and the weather warms up, reducing demand for the heating oil.
West Texas Intermediate crude surged to a five-month high as Brent advanced amid escalating tension between Ukraine and Russia, the world’s biggest energy exporter.
West Texas Intermediate crude surged above $102, the highest level in four months, on speculation that inventories in Cushing, Oklahoma, decreased last week and as cold weather in the U.S. boosted fuel demand.
West Texas Intermediate crude gained for a fifth day, paring the discount to Brent on speculation that inventories in Cushing, Oklahoma, decreased last week and as Libya worked to restore supplies.
U.S. inventories of crude oil rose last week for a third time as refineries reduced their processing, a Bloomberg survey showed.
Gasoline futures rose as the largest oil refinery in the U.S. carried out maintenance, threatening to curtail supplies.
Diesel futures rose to a two-week high as a cold blast headed for the U.S. East Coast and U.S. home construction dropped less than forecast last month.
Hedge funds reduced bullish bets on gasoline by the most since June as stockpiles surged to an 11- month high before a cold blast that probably will curb demand in the U.S. Midwest and Northeast.
Gasoline rose for the first time in three days after the U.S. jobless rate fell to a five-year low, signaling a boost in demand for the motor fuel.
"We've seen a big upswing in imports that's a lot larger than people expected and that's bearish for distillates."
- Jim Ritterbusch on Mar 06, 2014