Oil topped $64 a barrel today, extending a 3 per cent gain a day earlier, on concern over refinery outages that have drained petrol stocks ahead of the busy summer season in the world's top consumer.
The market was also supported by a warning from the International Energy Agency (IEA) that oil stocks in industrialised nations may drop further in coming months, after recording the biggest first-quarter decline in a decade.
US crude was up 20 cents a barrel at $664.09 this afternoon, after jumping $1.84 yesterday.
London Brent for May was up 68 cents at $69.40 on its expiry day after earlier hitting $69.59, its highest since September 2006.
"Gasoline has been at the forefront of the reasons for crude to go higher, combined with geopolitical tensions," said trader Tony Machacek of Bache Financial. Crude prices are up around 29 per cent from this year's low of $49.90 in January, also helped higher by unease between the West and Iran over Tehran's nuclear programme.
"Global oil market fundamentals have been tightening at a near-record pace worldwide despite the warmest winter on record and the first economic deceleration since 2001," said Goldman Sachs, raising its 3-month target for Brent by $1 to $70.
US petrol inventories have slumped more than 12 per cent since early February, with several big plants undergoing planned shutdowns for maintenance ahead of the summer, the peak driving season.