US oil prices increase to one-month high

United States oil prices have risen to a one-month high as tighter fuel stocks in the world's largest consumer and a faster-than…

United States oil prices have risen to a one-month high as tighter fuel stocks in the world's largest consumer and a faster-than-expected rise in global demand keep speculators nibbling away at the market.

New York December crude futures gained nine cents to an intraday high of $31.98 a barrel, the highest level since mid October, but then pared the gains. Prices have risen 12 per cent since October 30th as US storage tanks were drained more than expected ahead of the northern hemisphere winter.

London's Brent crude was down five cents at $29.25 a barrel.

The US Energy Information Administration (EIA) reported on Thursday an 800,000-barrel fall in crude oil stocks last week, almost in line with a forecast one million barrel draw. Distillate stocks, including heating oil, fell 1.5 million barrels, the EIA said.

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Crude stocks in the United States are less than the 300-million-barrel comfort levels as colder weather sets in ahead of winter.