Oil rose to highest since March as fuel markets heat up

Oil fluctuated as a global squeeze on refined products continued to pull fuel prices higher while Chinese economic data provided bearish headwinds.

West Texas Intermediate rose 3.4 per cent to the settle at highest level since late March. U.S. gasoline futures topped US$4 a gallon for the first time ever, while the national average retail price rose to a fresh record. Rising futures tend to trickle through to the pump quickly, signaling more pain for drivers when the summer driving season starts at the end of this month.

“The stronger products get, the more optimistic the market gets on crude runs increasing this summer,” said Scott Shelton, an energy specialist at TP ICAP Group Plc.