The energy commodity increased 4.4 percent as satellite images indicated inventories of crude oil in Cushing, Oklahoma decreased 2.6 percent during the period from October 18 to October 21. The slippage prompted Brent crude to slip to its lowest level in 12 weeks against West Texas Intermediate.
"The fundamentals in the U.S., at least the inventory numbers, have been quite a bit more bullish recently," research director Kyle Cooper with IAF Advisors in Houston told Bloomberg. "Cushing inventories are no longer bulging, so it makes sense that we are starting to see WTI come more into line with other grades."
At 5:14 p.m. on Monday, crude oil futures gained 1.5 percent, a $1.64 gain to $111.20 per barrel.
Reuters reports an English engineering company is preparing to return to Libya and resume oil production as the nation's new leadership works on rebuilding after the nation brought down leader Moammar Gadhafi. The autocrat of 42 years was killed late last week.
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