U.S. oil hits seven-month high as inventory drop seen; caution over Libya

By Barani Krishnan NEW YORK (Reuters) - U.S. crude prices hit seven-month highs on Tuesday on expectations of lower U.S. stockpiles and after wildfires threatened anew Canadian oil supplies, but pared some gains due to the potential for higher Libyan output. U.S. crude inventories likely fell a second straight week last week, declining by around 3.2 million barrels, a Reuters poll of analysts said. The combined factors drove U.S. crude's West Texas Intermediate (WTI) futures to mid-October highs