Crude oil rose
sharply on Friday as Brent and U.S. futures posted their first monthly
gains since June, supported by an improving demand outlook and supply
outages.
On its way to contract
expiration, March New York ultra-low sulfur diesel (ULSD) gained more
than 7 percent in volatile trading, and the 36 percent February increase
was the biggest percentage monthly rise in 15 years.
Brent crude LCOc1 rose $2.53 to $62.58 a barrel. February's 18 percent gain was the biggest monthly percentage rise since May 2009.
U.S. crude CLc1 rose $1.59 to settle at $49.76, managing a 3.1 percent February gain.
Both Brent and U.S. futures briefly pared gains after Baker Hughes Inc (BHI.N) data showed its U.S. oil drilling rig count fell only 33 to 986 this week.
U.S. crude gains have been curbed by rising crude oil inventories in the United States, up 8.4 million barrels last week, according to government data.
Money managers cut their net long U.S. crude futures and options positions in the week to Feb. 24, the U.S. Commodity Futures Trading Commission (CFTC) said Friday.
Both contracts have been supported by signs that lower prices are starting to reduce investment in non-OPEC production, even as the U.S. rig count slide slows.
Brent's more pronounced February gains have been fueled by disruptions to production and exports from Libya and Iraq.
"The main event this week has been the widening of the spread between Brent and WTI (U.S. crude)," said Ole Hansen, senior commodity strategist at Saxo Bank.
The spread between Brent and U.S. crude CL-LCO1=R was as wide as $13 a barrel on Friday, the highest Brent premium since January 2014.
Brent crude LCOc1 rose $2.53 to $62.58 a barrel. February's 18 percent gain was the biggest monthly percentage rise since May 2009.
U.S. crude CLc1 rose $1.59 to settle at $49.76, managing a 3.1 percent February gain.
Both Brent and U.S. futures briefly pared gains after Baker Hughes Inc (BHI.N) data showed its U.S. oil drilling rig count fell only 33 to 986 this week.
U.S. crude gains have been curbed by rising crude oil inventories in the United States, up 8.4 million barrels last week, according to government data.
Money managers cut their net long U.S. crude futures and options positions in the week to Feb. 24, the U.S. Commodity Futures Trading Commission (CFTC) said Friday.
Both contracts have been supported by signs that lower prices are starting to reduce investment in non-OPEC production, even as the U.S. rig count slide slows.
Brent's more pronounced February gains have been fueled by disruptions to production and exports from Libya and Iraq.
"The main event this week has been the widening of the spread between Brent and WTI (U.S. crude)," said Ole Hansen, senior commodity strategist at Saxo Bank.
The spread between Brent and U.S. crude CL-LCO1=R was as wide as $13 a barrel on Friday, the highest Brent premium since January 2014.
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