West Texas Intermediate oil rose after a government report showed stockpiles dropped at Cushing, Oklahoma, the contract's delivery point. Brent gained as fighting intensified in eastern Ukraine.
Cushing supplies fell by 1.45 million barrels to 18.8 million last week, according to the Energy Information Administration. The decline left stockpiles at the lowest level since November 2008, data from the EIA, the Energy Department's statistical arm, showed. Separatists shot down two Ukrainian fighter jets in the same region where Malaysian Air flight MH17 was destroyed, the government said.
WTI for September delivery advanced 28 cents to $102.67 a barrel at 10:33 a.m. on the New York Mercantile Exchange. The August contract expired yesterday after losing 17 cents to $104.42. The volume of all futures traded was 16 percent below the 100-day average for the time of day.
Brent for September settlement rose 39 cents, or 0.4 percent, to $107.72 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a $5.05 premium to WTI, up from $4.94 at yesterday's close.
Nationwide crude stockpiles fell 3.97 million barrels to 371 million in the week ended July 18, EIA data showed. A 2.9 million-barrel decline in supply was projected by analysts surveyed by Bloomberg.

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