LONDON, June 28: The New York oil price surged above $70 per barrel for the first time in ten months on Thursday, amid tight supplies in the US, the world's biggest consumer of energy.

New York's main oil futures contract, light sweet crude for delivery in August, soared by more than a dollar to $70.52 in electronic deals -- the highest level since August 28, 2006.

It later stood at $70.25 in pit trading, up $1.28.

In London, Brent North Sea crude for August delivery gained 41 cents to $70.94 per barrel in electronic deals.

“Essentially, it is just the extension of the gains of yesterday's rally,” said BMO Capital Markets analyst Bart Melek.

Crude prices closed more than a dollar higher on Wednesday after the US Department of Energy (DoE) reported that American petrol stockpiles fell by 700,000 barrels to 202.6 million barrels in the week ending June 22.

That surprised the market, as analysts had expected a gain of 1 million barrels.—AFP