US crude powers up to 28-month peak as Brent declines

US West Texas Intermediate rose for the third straight session to the highest since July 2015, while Brent tilted lower away from a November 13 high hit earlier today, amid low market liquidity due to the US Thanksgiving bank holiday. 

As of 06:32 GMT, US West Texas Intermediate rose 0.45% to $58.28 a barrel from the opening of $58.02, while Brent futures due on January 15 shed 0.11% to $63.25 a barrel from the opening of $63.33, as the dollar index shed 0.09% to 93.14 from the opening of 93.22. 

Oil futures carried on the gains of earlier this week on prospects of another extension to the deal to cut global output by 1.8 million bpd until the end of 2018 by OPEC and Russia. 

Canada's oil supplies to the US took a dive after Trans Canada announced a 85% cut in supplies throw the Keystone pipeline after closing it last week following leakages. 

The dollar index hit five-week lows after the Federal Reserve's meeting minutes showed concerns about the softening inflation and hurt prospects of rate hikes in 2018, in turn buoying oil futures. 

On Wednesday, the Energy Information Administration released its report on US crude stocks, showing a drawdown of 1.9 million barrels in the week ending November 18, compared to a 1.9M increase in the previous reading, while analysts expected a 1.4M drop, with total stocks now reaching 457.1 million barrels, remaining within the upward range on average in this time of year. 

Otherwise, gasoline stocks in the world's largest energy consumer rose 0.3 million barrels, while distillate stocks, including heating fuel, fell 1.0 million barrels, remaining within the lower range on average in this time of year.