LONDON, Sept 11: The price of oil rose slightly on Wednesday in response to figures showing an unexpected fall in US crude oil stock levels, though trading volumes were low because of the first anniversary of the September 11 attacks.

Reference Brent North Sea crude for October delivery firmed to $28.66 a barrel in late trading from $28.58 at the previous close.

Benchmark light sweet crude October-dated futures gained nine cents a barrel in early New York deals to $29.82 a barrel.

“Obviously it’s a very quiet day’s trading here, on the anniversary of the September 11 attacks last year,” said ABN Amro trader Kriss Tremaine, noting that the New York market opened later than usual because of a memorial service.

Traders in London observed a two-minute silence at 1246 GMT.

“Volumes are low and people are generally tentative,” said Tremaine, describing the atmosphere as “morose”.

“You wouldn’t want to be caught short in this kind of market.

“Also US inventory levels are looking dangerously low,” he said.

The US energy department reported that crude oil stocks fell 5.3 million barrels, or 1.8 per cent, to 293.2 million in the week ended September 6 from the previous week.

Gasoline stocks declined 300,000 barrels to 205.6m, while distillate fuel inventories increased 4.0m barrels to 133.6m.

Commerzbank analyst David Thomas said the market was on alert for any fresh terrorist attacks.

Such concerns were heightened by a warning from the US Navy on Tuesday of possible attacks on oil tankers by the al-Qaeda terrorist network.

“Any further terrorist action would be met by an even stronger will to act against terrorism and clearly Iraq is next in line for such action,” Thomas said.—AFP