LONDON, July 26: World oil prices surged on Wednesday as traders reacted to a surprise retreat in US gasoline or petrol reserves, and tracked raging violence in the Middle East.

New York’s main contract, light sweet crude for delivery in September, climbed 75 cents to $74.50 per barrel in pit trading.

In London, Brent North Sea crude for September delivery leapt $1.25 to $74.53 per barrel in electronic deals.

The US Department of Energy (DoE) said on Wednesday that gasoline stocks dropped by 3.2 million barrels to 211 million in the week to July 21.

US crude oil inventories were stable at 335.5 million barrels. Analysts had forecast a fall of 500,000 barrels.

Gasoline statistics are under heightened scrutiny because of peak US demand amid the crucial holiday driving season.

The DoE also said that US refineries operated at 92.5pc capacity, down a touch from 92.9pc in the week before.—AFP