Crude Rises to Three-Week High as Distillate Supply Drops

West Texas Intermediate crude rose to a three-week high after a report showed that U.S. distillate supplies tumbled as cold weather bolstered heating demand.

Futures gained 0.6 percent. The Energy Information Administration said stockpiles of the fuel, a category that includes heating oil and diesel, fell 3.21 million barrels last week to 120.7 million. Crude inventories increased for the first time since November. WTI also advanced after the southern portion of the Keystone XL pipeline linking Cushing, Oklahoma, to the Gulf Coast started making deliveries yesterday.