Oil prices climbed above $62 on Thursday as crude and gasoline inventories in the United States showed a surprise drop, but the top consumer remained comfortably cushioned against potential supply disruptions.
US light crude for May delivery rose 80 cents or 1.3 percent to $62.57 a barrel by 0734 GMT, recovering losses in New York led by a sell-off in gasoline futures. London Brent crude was up 73 cents to $62.23.
Crude oil stocks in the world's largest user fell 1.3 million barrels last week against expectations of a build of 2.5 million barrels, the first drop in six weeks, the Department of Energy reported on Wednesday. But the inventories remained near seven-year highs, or 9 percent above last year.
"Markets will need to see many more bullish surprises before lifting near-term crude values relative to deferred contracts," Jan Stuart, economist at UBS wrote in a research note.
He was referring to the June-delivery contract, which stood more than $1.00 higher than May. Gasoline stocks in the United States, the focus of some traders' attention ahead of a change in specifications and the summer driving season, fell a more-than-expected 2.3 million barrels, the government report said.
But the drop in crude and gasoline stocks was mitigated by higher refinery runs, which rose 1 percentage point to 86.7 percent of capacity, double the average expected increase, helping to ease concern over supplies.
Refinery production is expected to recover further, as BP's 460,000 barrel-per-day (bpd) refinery in Texas City, the third-largest in the US, was in the process of restarting and will ramp up through the second quarter, a BP Plc executive said on Wednesday.
BP brought the refinery down for a safety overhaul in September, after an explosion last spring that killed 15 workers and a fire in August.
Top oil exporter Saudi Arabia again vowed to guarantee at least 1.5 million barrels of daily spare production capacity to ensure stable global supply.
Saudi Oil Minister Ali al-Naimi, speaking after the official opening of the $850 million Haradh oilfield project, said new oil from Haradh - the biggest single boost to Opec production this year - has raised Saudi output capacity to 11.3 million bpd.
The kingdom is now pumping 9.5 million bpd into the 85 million bpd world oil market. "The aim of the kingdom is to be a trustworthy supplier. We want global stability," Naimi told reporters.
Rising US crude stocks in 2006 have helped counter disruptions to oil production due to violence in Nigeria and concerns that tension over Iran's nuclear work could hamper supply.
Output from Opec's 11 members in March was expected to slip by 300,000 bpd to 29.7 million bpd after militant attacks hit supply in Nigeria, consultant Petrologistics said on Wednesday. The figure was down from a revised estimate of 30 million bpd in February, the consultancy said.
Demand appeared to stay healthy despite high prices. Japan, the world's third-largest oil consumer, imported nearly 12 percent more crude in February versus a year ago, said the country's Ministry of Finance.
Second-largest oil consumer China has also increased its crude imports in February by 8 percent, following a monthly record rate in January.
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