By Arathy Somasekhar HOUSTON (Reuters) -Oil prices traded about 2% higher on Thursday, reversing course, as low levels of diesel inventory ahead of winter helped investors shrug off higher-than-expected stocks of crude and gasoline. Brent crude futures for December delivery rose $2.05 to $94.50 a barrel, a 2.2% gain, by 12:04 p.m. ET (1704 GMT). U.S. crude rose $1.95, or 2.2%, to $89.22 per barrel. Distillate stockpiles, which include diesel and heating oil, fell by 4.9 million barrels in the week ended Oct. 7 to 106.1 million barrels, the lowest since May, the Energy Information Administratio…