January 10, 2008	Thursday	Zilhaj 30, 1428

LONDON, Jan 9: Oil prices climbed on Wednesday after data that revealed an unexpectedly sharp drop in crude inventories in the United States, the world’s biggest energy consumer, traders said.

New York’s main contract, light sweet crude for delivery in February, rose 82 cents to $97.15 per barrel.

Brent North Sea crude for February gained 57 cents to $96.11.

Despite the gains, prices remain beneath the record highs above $100 that were struck last week.

The US Department of Energy (DoE) said on Wednesday that crude reserves plummeted by about 6.8 million barrels last week a much higher reading than the 2.0 million barrel drop forecast by analysts.

The decline marked the eighth weekly fall in a row.

News of falling US crude inventories in the previous DoE report, alongside simmering geopolitical tensions in Pakistan, had helped push prices up to record levels last week.

New York crude struck a record $100.09 last Thursday, when Brent had also hit an historic $98.50.

Aside from the DoE report, traders seized on Wednesday on fresh supply fears in Nigeria, which is the biggest crude producer in Africa.

“Intelligence sources in the Niger Delta are reporting that rebel groups are preparing for further attacks on oil installations,” said Robert Laughlin at MF Global.

Prices were also pushed higher by the threat of potential disruptions to supplies from the oil-rich Middle East, following a spat between crude producer Iran and the United States.On Monday, the Pentagon reported a weekend encounter between the US Navy and Iranian vessels in the Strait of Hormuz -- which is a vital shipping route for Middle East crude.—AFP