June 15, 2007	Friday	Jamadi-ul-Awwal 29, 1428

LONDON, June 14: World oil prices soared on Thursday, breaching $71 in London, after data showed no increase in US gasoline stockpiles last week as the peak driving season in North America begins.

Brent North Sea crude for July delivery jumped $1.14 to $71.08 per barrel in electronic deals. The contract, which expires at the close, had gained more than a dollar on Wednesday in the wake of the US inventory data.

On Thursday, New York’s main oil futures contract, light sweet crude for delivery in July, leapt $1.34 to $67.60 per barrel in floor trading.

Crude prices had rallied on Wednesday after the US Department of Energy said US inventories of motor fuel were flat at 201.5 million barrels in the week ending June 8, well below the average range for this time of year and ending a five-week streak of gains.

Market expectations had been for a rise in gasoline stocks of 1.6 million barrels last week.

Oil prices are meanwhile also being supported by a decline in refinery utilisation for the second consecutive weak.

“The market was expecting a very bearish report (from the DoE) which did not materialise,” Sucden analyst Michael Davies said in London on Thursday.

Gasoline supplies remain in focus amid the current US driving season when demand for motor fuel traditionally peaks as holidaymakers hit the country’s roads.

Despite recent weekly increases, gasoline stocks in the United States remain at historically low levels for this time of year.

Elsewhere in the market, Opec held steady its estimate of world demand for oil this year in a monthly report -- and brushed aside calls from consuming countries that it boost supply in a bid to lower prices.

“Market fundamentals do not indicate that additional supply is necessary at this time,” said the cartel, although it added that it “stands ready to relieve any emerging tightness in the crude oil market”.

The Opec added that demand in the US had progressed by 2.3pc in May due to a heavy demand for gasoline.—AFP