LONDON, June 6: World oil prices rose on Wednesday as traders digested news that US refinery production fell last week. Investors were also keeping a keen eye on a rogue cyclone in the crude-rich Middle Eastern region.

Brent North Sea crude for July delivery added 62 cents to $71.07 per barrel in electronic deals.

New York's main oil futures contract, light sweet crude for delivery in July, gained 39 cents to 66.00 dollars per barrel in floor trading.

The US Department of Energy said in a market update on Wednesday that American inventories of motor fuel leapt by an unexpected 3.5 million barrels to 201.5 million barrels in the week to June 1, boosted by strong imports.

That was more than double analysts' consensus forecasts for a gain of 1.6 million.

Such an increase in stock levels would be expected to put downward pressure on prices in normal market conditions, but dealers focused instead on news that refinery production had fallen.

“The larger-than-expected builds in product stocks are the clear bearish element of this week's numbers,” said Citigroup analyst Tim Evans.

However, he added: “The bullish aspect -- at least for the products -- was the drop in the refinery utilisation rate, which will have to rebound sharply in order to sustain or increase current output levels.” Gasoline statistics are a key focus for traders amid the ongoing summer driving season, whereby many Americans hit the highways for their holidays, sparking a rush for gasoline or petrol.

The DoE added that US crude oil reserves advanced by 100,000 barrels to 342.3 million barrels last week. Analysts had pencilled in an increase of 250,000 barrels.

Oil prices also found further support as Cyclone Gonu lashed Oman on Wednesday, forcing the evacuation of thousands of people in the Gulf state and neighbouring Iran for the strongest tropical storm in the region in 30 years.

As Gonu hit the Omani capital, strong winds snapped tree branches and blew over street signs. Roads were flooded and thick fog blanketed out the mountains encircling the city.

Oil experts said any impact on world oil prices would be temporary, provided that energy facilities in the area remained intact.

“If shipping is halted through Hormuz, I think there is going to be a panic in world oil markets and prices could shoot to as high as $80, but of course for a very short period,” Kuwaiti oil expert Kamel al-Harami said.

A majority of oil exports from Opec kingpin Saudi Arabia and Iraq, as well as all exports from Iran, Kuwait, the United Arab Emirates and Qatar pass through the straits of Hormuz.

However Opec powerhouse Saudi Arabia, which lies west of Oman, said it did not expect the storm to affect the country's oil-producing regions. —AFP