Commodities: Brent strikes 6-month high

LONDON (ShareCast) - Crude registered a modest gain on Wednesday while Brent settled at a six month high on hopes that Greece is about to reach a deal needed for its next financial bailout. Crude oil for March delivery rose 30 cents to settle at $98.71 a barrel on the New York Mercantile Exchange. On the ICE futures exchange Brent crude oil gained 97 cents at $117.20 a barrel, after hitting an earlier high of $177.50. Wednesday's settlement was the highest for front-month Brent since 28 July 28. Brent was also supported by concern about escalating violence in Syria and reports of an explosion at military barracks in oil rich Nigeria. Crude oil finished the day with modest gains after a government report showed US crude oil supplies rose less than expected last week. The Department of Energy (NYSEArca: JJE - news) reported US oil inventories rose 300,000 barrels last week, way below the 2.7m barrel increase pencilled in by analysts. Gasoline inventories rose 1.6m barrels and distillates, which include heating oil and diesel, rose 1.2m barrels. Gasoline supplies were expected to rise 100,000 barrels, while distillates were forecast to fall 900,000 barrels. The report also said oil demand overall was weak. Surplus supplies at Cushing are a driving force behind widening price gap between Brent and crude oil. Among precious metals gold settled the day lower as safe haven demand dwindled. Gold for April declined $17.10 to close at $1,731.30 an ounce on the Comex division of New York Mercantile Exchange. Demand elsewhere also dried up with silver for March delivery down 49 cents to $33.70 an ounce.