Highs of the day for oil

WTI crude has stretched gains to $1.46 today, hitting $59.30 per barrel. That's the highest since May 30.

The focus today is on weekly US oil inventories. A series of huge builds in supplies has flummoxed the market and confused analysts who say it doesn't match up with refinery output. There is some talk that oil in pipelines is being counted as inventories and that the EIA will separate them out next year. But that's just one theory.

In any case, we're into drawdown season now and the latest API numbers showed a big drop in oil supplies. That's been the main factor lifting oil today.

Highs of the day for oil

The official numbers are due at 10:30 am ET (1430 GMT) and are expected to show a 2.873m drawdown.

As for crude, it's nearing a few points of resistance in the $59.70-60.49 range.