Oil rise nearly a dollar on back of low diesel stocks ahead of winter

Oil prices traded about $1 higher on Thursday, reversing course as low levels of diesel inventory ahead of winter helped investors shrug off higher-than-expected stocks of crude and gasoline.

Brent crude futures for December delivery rose $1.22 to $93.67 a barrel, a 1.3% gain, by 11:29 a.m EST (1529 GMT), after retreating earlier in the day. U.S. crude rose $1.15, or 1.3%, to $88.42 per barrel.

“The most disturbing part of the (EIA) report is that distilling inventories are so far below average. Winter is coming,” said Phil Flynn, analyst at Price Futures Group in Chicago.

“The market is looking at the big picture, as opposed to the short term demand numbers that were impacted by the storm.”