Oil rises more than 2% due to low diesel stocks before the boreal winter

Los oil prices rose about 2% on Thursday after reversing trend as low levels of diesel inventories ahead of the winter led investors to gloss over data that revealed higher-than-expected crude and gasoline stockpiles.

crude oil futures Brent for December delivery closed up $2.12, or 2.29%, to $94.57 a barrel. Meanwhile, US WTI oil futures ended the day up 1.84 dollars, or 2.11%, to settle at 89.11 dollars a barrel.

US distillate stockpiles, which include diesel and heating oil, fell by 4.9 million barrels in the week ending Oct. 7, to 106.1 million barrels.

This was its lowest level since May, said the Energy Information Administrationagainst expectations of a decline of 2 million barrels.

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The figure prompted investors to look past a surprise build of 2 million barrels in gasoline stocks and a larger-than-expected rise of nearly 10 million barrels in the country’s oil inventories.

The most concerning part of the report (EIA) is that distillery inventories are well below average. Winter is coming,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

“The market is looking at the big picture, as opposed to short-term demand numbers that were affected by the most recent storm,” he said.

The report comes amid concerns that rising inflation will affect fuel demand, after the International Energy Agency warned that the world economy could go into recession.