West Texas Intermediate crude surged to a 15-month high after U.S. stockpiles tumbled for a second week. WTI’s discount to Brent narrowed to less than $2 for the first time since December 2010.
Oil advanced 2.9 percent after the Energy Information Administration said supplies fell 9.87 million barrels, three times as much as projected in a Bloomberg survey. WTI has moved into backwardation, with futures closest to expiration more expensive than those for later delivery. The gain accelerated as minutes from a Federal Reserve meeting showed many officials want employment to pick up before slowing stimulus.