Oil rises to three-month high

Oil advanced to the highest level this year in New York after a government report showed US crude stockpiles climbed by the least since January.

Futures rose as much as 3.6 percent. Crude supplies climbed 1.29 million barrels last week, according to the Energy Information Administration.

Oil prices are almost 50 percent lower than a year ago as the Organisation of Petroleum Exporting Countries maintains a policy of defending market share in response to the highest US output in more than three decades.

OPEC production rose the most in almost four years in March, the International Energy Agency said Wednesday in a report.

“The supply gain was a lot smaller than what we’ve gotten accustomed to so the report is bearish even though inventories are at the highest level in more than 80 years,” John Kilduff, partner at Again Capital LLC, an energy hedge fund in New York, said. “The big drop in gasoline is also supportive, since it’s the seasonal leader.”

West Texas Intermediate for May delivery increased $1.83, or 3.4 percent, to $55.12 a barrel at 11:04 a.m. on the New York Mercantile Exchange. Futures reached $55.44, the highest level since December 29.

Brent for May settlement, which expires Wednesday, climbed $1.14, or 2 percent, to $59.57 a barrel on the London-based ICE Futures Europe exchange. The more active June contract gained $1.25, or 2.1 percent, to $61.06. The European benchmark crude traded at a $4.45 premium to WTI.

“We’ve tested the $54 and change area three times since Jan. 2 and retreated,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said. “If we can hold above it now we’ll reach a new high for the year and start testing new targets.”