Brent Climbs More Than $1; Shrugs Off Fed Taper Announcement

U.S. crude gained scant support from data from the U.S. Energy Information Administration (EIA) showing crude inventories in the world's largest oil consumer dropped 2.9 million barrels to 372.3 million barrels, compared with forecasts of a 2.3 million barrel draw. The higher-than-expected draw was countered by data showing refinery runs fell 1.1 percent from the previous week.

Brent crude rose $1.19 to settle at $109.63, after settling nearly $1 lower on Tuesday.

U.S. oil rose 58 cents to close at $97.80, after earlier rising 79 cents to a high of $98.01 on strong housing data from the U.S.

U.S. RBOB gasoline futures gained 5.01 cents to close at $2.6973.

Libya Risk; Pipeline To Start In January

The spread between the two benchmarks settled at $11.83, nearly $1 wider than Tuesday's close.

Geopolitical risk in Libya, where on Sunday an autonomy movement in the east said it would not end a blockade of several oil-exporting ports, supported Brent.

U.S. crude also gained support from rising equity prices, but the filling of the 700,000 barrel-per-day TransCanada Corp pipeline from the Cushing, Oklahoma storage hub to the Gulf Coast kept gains in check.


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