LONDON, May 27: World oil prices rose on Friday as the United States prepared for the start of its summer driving season when demand for gasoline, or petrol, increases sharply. New York’s main contract, light sweet crude for delivery in July, climbed 47 cents to $51.48 per barrel in early deals.

In London, the price of Brent North Sea crude oil for delivery in July gained 33 cents to $50.49 per barrel. Prices had closed more than a dollar higher on Wednesday when a US government survey showed a surprise drop in inventory levels of crude oil, which refineries turn into gasoline.

The US summer holiday driving season, which sees many Americans taking to the open roads in their vehicles, officially begins this weekend ahead of Monday’s Memorial Day holiday. “Some of the gains seen this week have also been in preparation for the long weekend,” Investec analyst Bruce Evers said.

The US Energy Department said on Wednesday that US crude inventories fell 1.6 million barrels in the latest week, against market expectations for an increase. But at 332.4 million barrels, stocks remained well above the upper end of the average range for this time of year.

The report also showed gasoline stockpiles rising 600,000 barrels to 215.4 million, in line with most forecasts.

“With the product inventories still bearish the market may struggle to break any higher unless we see some bullish fundamental news,” analysts at the Sucden brokerage firm said.

“Crude stocks are still over 10 per cent above year-ago levels and Opec looks likely to continue almost flat-out crude production.” The Organization of Petroleum Exporting Countries is producing in excess of 30 million barrels per day, a figure that is close to 25-year high points.

Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo, said US gasoline stockpile levels were stable, allowing prices to ease below $50 per barrel next week.

“I think there’s a possibility of prices going down rather than going up,” he said. “I don’t think the gasoline market is tight, it’s stable,” he said, adding that US refineries were capable of meeting demand during the summer driving season.—AFP