LONDON, Aug 13: Oil prices rallied on Wednesday after official data showed a surprisingly sharp drop in US stockpiles of motor fuel amid the peak demand season for gasoline in the United States.

New York’s main contract, light sweet crude for September delivery won back $2.82 to $115.83 a barrel.

Brent North Sea crude for September gained $2.06 to $113.21.

Crude futures had slid to four-month lows on Tuesday after Russia announced the end of military operations in Georgia and the International Energy Agency forecast a steep drop in oil demand in advanced countries.

On Wednesday, the US Department of Energy, publishing its latest weekly snapshot on stockpiles, said that US reserves of gasoline, or petrol, had fallen by 6.4 million barrels in the week ended August 8.

Analysts had pencilled in a drop of only 2.0 million barrels.

“It’s maybe the most bullish report we’ve seen ... all year, just in terms of a one-week surprise,” said Brad Samples, an analyst with Summit Energy, who was quoted by Dow Jones Newswires.

Gasoline inventories are closely watched at this time of year as American motorists hit the highways for their summer vacations, pushing up demand for petrol.—AFP