West Texas Intermediate crude may rise above $110 a barrel if prices breach $105, said Kyle Cooper, director of commodities research at IAF Advisors in Houston.
West Texas Intermediate crude rose to the highest price in three weeks as a government report showed stockpiles fell at Cushing, Oklahoma, the delivery point for the futures. Brent oil rose.
Natural gas futures rose for the sixth time in seven days as forecasts for higher-than-normal temperatures indicated stronger demand for the power-plant fuel.
West Texas Intermediate crude rose for a second time this week, narrowing its discount to Brent, as inventories dropped at Cushing, Oklahoma.
Hedge funds turned bearish on U.S. natural gas for the first time in eight weeks as a surplus and warmer-than-normal weather pushed the price of the heating fuel to the lowest level in more than two years.
"While the overall supply and demand is becoming bearish, it's certainly not bullish."
- Kyle Cooper on Aug 29, 2014