Oil prices gained this morning after US government data showed a build-up in crude but a further fall in gasoline stocks ahead of peak summer demand.
London Brent crude, currently seen as more representative of global oil prices than US crude, gained 18 cents to $66.43 a barrel earlier this morning after dropping 75 cents yesterday. US crude rose four cents to $63.72 after a 72-cent drop a day earlier.
US crude oil inventories rose by 1.1. million barrels last week in government data published yesterday, slightly above analysts' forecasts, due in part to continued low demand from refiners amid a string of breakdowns.
But gasoline stocks continued to fall for the 12th consecutive week, down 1.1 million barrels, taking them about 15 per cent below levels in early February to their lowest since October 2005.
Gasoline futures in New York pulled back after gains in recent weeks that have supported crude oil prices, as a likely recovery in refinery operations in coming weeks could reverse the declines caused by plant shutdowns.
The US government said yesterday it will not buy crude to fill the country's strategic reserve until at least the end of summer, further allaying concerns of oil being taken off the market just as refineries ramp up to meet demand.
Worries over European fuel supplies were also eased after Belgian oil sector unions and employers agreed a provisional pay deal yesterday, probably averting a strike that would have shut down the nation's oil refineries.