June 08, 2007	Friday	Jamadi-ul-Awwal 22, 1428

LONDON, June 7: World oil prices rallied strongly on Thursday as traders reacted to falling US refinery gasoline production amid the country’s peak-demand driving season. They also fretted over geopolitical and weather-related concerns in the crude-rich Middle Eastern region.

New York’s main oil futures contract, light sweet crude for delivery in July, leapt $1.19 to $67.15 per barrel in floor trading. Earlier, the contract soared to $67.42 -- last seen on September 7, 2006.

Brent North Sea crude for July delivery advanced 34 cents to $71.36 per barrel in electronic deals, after rising as high as $71.56.

“The surprise reduction in refinery runs is definitely boosting prices as the peak demand summer driving season gets underway,” said BNP Paribas analyst Harry Tchilinguirian.

Oil prices had risen on Wednesday after publication of the weekly update on US energy stockpiles.

The US Department of Energy had said that American inventories of motor fuel rose by 3.5 million barrels in the week to June 1, boosted by imports.

That was more than double market expectations for a gain of 1.6 million.—AFP