LONDON, April 11: World oil prices climbed on Wednesday after official data showed US gasoline stockpiles slumped last week by much more than expected, ahead of the peak demand season for motor fuel.
Traders also kept a keen eye on major crude producer Iran, which remains in the international spotlight over its disputed nuclear energy ambitions.
The price of Brent North Sea crude for May delivery jumped 79 cents to $68.21 per barrel in late London electronic trading, slightly off a peak of $68.69 after the stocks data was published.New York’s main oil futures contract, light sweet crude for delivery in May, gained 18 cents to $62.07 per barrel in pit trading after reaching $62.56 earlier on Wednesday.
The drop in gasoline inventories “was the biggest surprise in the latest data and nothing else may matter all that much in the near term,” Citigroup analyst Tim Evans said.
The US Department of Energy said on Wednesday that inventories of US gasoline, or petrol, plunged by 5.5 million barrels to 199.7 million in the week to April 6. Analysts had forecast a drawdown of 1.4 million barrels.
“A surprisingly massive gasoline inventory draw is likely to push up gasoline contract prices and prices at the pump,” said Jason Schencker at Wachovia Securities.
Gasoline stockpiles are a crucial focus for the market ahead of the so-called US driving season that starts next month and sees many Americans hit the roads for their holidays.
Aside from US stockpiles, traders tracked the news flow on Iran.—AFP
