Oil prices firmed above $60 a barrel today to touch a new six-month high on bullish inventory data and a spate of refinery accidents in the United States, in spite of weak market fundamentals.
Fire struck gasoline making units at two US refineries this week, triggering a roughly 8 per cent spike in US gasoline futures that will likely filter through to retail pumps just as the summer driving season begins.
US crude rose 59 cents to $60.69 a barrel by 11.47am after briefly touching $60.75, and London Brent rose 43 cents to $59.35.
Reformulated petrol blendstock for oxygen blending, or RBOB, was trading at $1.8497 a gallon, up 2.05 per cent on the day and its highest level since October 16th, 2008.
Unrest in OPEC member Nigeria, Africa's top oil and gas exporter, also drove up prices this week. Security forces clashed with militants yesterday near an oil flow station operated by Chevron in the western Niger Delta.
Italian oil company ENI said on Wednesday it had declared force majeure in its Brass River export terminal in Nigeria, adding its output affected so far was equivalent to 9,000 barrels per day.
Oil prices have been on an upward trend since mid-April on equity-led rallies. They have recovered from below $33 in December after a plunge from record highs above $147 in July.
Yesterday after oil markets closed industry group the American Petroleum Institute (API) released data showing US crude stocks fell by a much larger than expected 4.5 million barrels in the week to May 15th.
A Reuters poll showed government data due on Wednesday was expected to show US crude stockpiles fell last week by 200,000 barrels, with gasoline inventories down by 1.2 million barrels and distillate stocks up 1.0 million barrels.
Reuters