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Oil prices rose yesterday after a big drop in petrol supplies in top fuel consumer the United States raised worries of a crunch leading into the summer driving season.
A weekly US government report showed petrol stocks fell 3.4 million barrels last week, extending a decline in inventories that has brought them more than 7 per cent below where they were in early February.
Stockpiles of the key motor fuel have been dwindling due to low production by the nation's refineries amid seasonal maintenance and unplanned repairs, along with a slowdown in import levels from overseas, according to the US Energy Information Administration.
"I'm concerned by the gasoline stocks decline," said Jason Schenker, economist at Wachovia Corp in North Carolina. "This is really going to be critical."
US light, sweet crude for May delivery was up US42c at US$60.03 a barrel, while Brent crude was up US43c at US$61.20 a barrel.
Gasoline futures, which hit a seven-month high of US$1.985 a gallon on Tuesday, were down 0.21c to US$1.94 a gallon as some investors took profits, limiting crude's rally.
US crude has risen from a 20-month low of US$49.90 hit in January, partly because of supply cuts by Opec, though it is well below an all-time high of US$78.40 reached last July.
Opec agreed last week to keep current oil supply restraints in place. However, Opec oil ministers have not ruled out further action.
- REUTERS
