Crude oil erased losses after a U.S. government report showed gasoline production dropped to the lowest level in almost two years last week.
Output of the motor fuel tumbled 2.8 percent to 8.54 million barrels a day in the week ended Jan. 20, the smallest amount since the period ended Feb. 12, 2010, the Energy Department reported today. Total products demand, a measure of fuel consumption increased 7.5 percent to the highest level in more than two months.
Crude oil for March delivery gained 2 cents to $98.97 a barrel at 11:08 a.m. on the New York Mercantile Exchange. Oil traded at $97.70 a barrel before the release of the report at 10:30 a.m. in Washington. Earlier, crude touched $97.53 a barrel.
