Oil rises 3 percent in broad rally ahead of expected stockpile drop
By Barani Krishnan
NEW YORK (Reuters) - Crude oil prices jumped 3 percent or more on Tuesday, and gasoline and diesel rose as much, as bulls ramped up bets across the oil complex for another weekly drop in U.S. stockpiles.
U.S. crude inventories likely fell for a sixth straight week in the week ended June 5, data from industry group American Petroleum Institute (API) is expected to show later on Tuesday before official numbers on Wednesday from the government's Energy Information Administration (EIA).
A Reuters poll of five analysts forecast on average that crude stocks fell 1.7 million barrels last week. [EIA/S]
Brent futures LCOc1 were up $1.88, or 3 percent, at $64.57 a barrel by 12:29 p.m. EDT (1629 GMT). That was the largest advance on the day for Brent since May 29.
U.S. crude futures CLc1 rose by $1.70 to $59.84.
Among refined products, gasoline RBc1 rose about 3 percent while ultra low sulphur diesel, also known as heating oil HOc1, gained almost 4 percent.
"It's an across-the-board run as we wait for the inventory data," said Phil Thompson at Mobius Risk Group, an energy investment advisory in Houston.
Ahead of the stockpile numbers on Wednesday, the EIA in a separate report raised its forecast for this year's oil demand to 380,000 barrels per day from 340,000 bpd previously. Continued...