Oil jumped over 2% to $61 a barrel today, supported by OPEC supply cuts and a drop in fuel stockpiles in top consumer the US.
OPEC is lowering output and some members have said the group may cut supply further in December. The cutback comes as oil demand is nearing its seasonal peak in the northern hemisphere winter.
US crude was up $1.17 at $61.00 a barrel this evening and rose as far as $61.26, the highest since late October. London Brent rose $1.55 to $61.14.
Oil also drew strength from a rally in U.S. natural gas after data showed domestic supplies fell last week.
Gulf members of OPEC said on Wednesday they were fully committed to the 1.2 million barrels per day (bpd) cut agreed from November, but said markets remained oversupplied for now.
Saudi Arabia and other Gulf OPEC members have said they see scope for further supply cuts when the Organization of the Petroleum Exporting Countries next meets on Dec. 14 in Nigeria.
US distillate stocks, including heating oil, fell last week by 2.7 million barrels, more than the 500,000-barrel draw expected, the U.S. government said on Wednesday.
But this level still left stocks about 11% up on a year-ago -- ahead of peak winter demand for fuel.
