Oil rose as the difference between U.S. and global benchmark prices narrowed to the smallest in eight months amid rising North Sea deliveries and falling stockpiles at the largest U.S. storage hub.
The spread between West Texas Intermediate and Brent closed at $2.04, the least since January. A narrowing spread signals that the global supply glut is growing while there may be relative tightening in parts of the U.S. Stockpiles at Cushing, Oklahoma, the delivery point for WTI traded in New York, fell 1 million barrels last week in a Bloomberg forecast.
WTI for October delivery increased 59 cents, or 1.3 percent, to settle at $44.59 a barrel on the New York Mercantile Exchange. The volume of all futures traded was 20 percent above the 100-day average at 4:44 p.m.
Futures extended gains after the American Petroleum Institute was said to report U.S. crude supplies slipped 3.13 million last week. The contract traded at $45.15 at 4:44 p.m.
Brent for October settlement, which expired Tuesday, rose 26 cents, or 0.6 percent, to $46.63 a barrel on the London-based ICE Futures Europe exchange.