Oil prices extended a four-day rally to near $72 a barrel on Thursday after a US report showed a surprise decline in crude stockpiles and Opec said it would maintain official output curbs. US crude rose 63 cents to settle at $71.94 a barrel, topping off a 6 percent climb since last Thursday. London Brent rose 3 cents to $69.86.
The gains came after data from the US Energy Information Administration (EIA) showed crude inventories in the United States fell a larger-than-expected 5.9 million barrels as imports slowed and refiners raised run rates. The report also showed US petroleum product demand running at 2 percent higher than a year ago - a sign the slump in consumption caused by the recession may be petering out.
Analysts said, however, that the bullish impact of the report was tempered by increases in stockpiles of gasoline and distillates such as diesel and jet fuel. "While the crude numbers are supportive, the product builds are limiting any gains on crude at this point," said Phil Flynn, analyst at PFGBest Research in Chicago.
-- Opec maintains curbs
-- IEA says raises oil demand forecast
Earlier on Thursday, the International Energy Agency (IEA) said daily global oil demand will be almost half a million barrels higher than previously forecast this year and next on stronger-than-expected US and Asian consumption. The Organisation of the Petroleum Exporting Countries meeting in Vienna, meanwhile, said it saw no need to change output formally, although some members called for stricter compliance on existing curbs.
The group has agreed to cut 4.2 million barrels per day at a series of meetings since last autumn. "The lack of more aggressive action reflected a belief that demand will be sufficient in pulling down the overhang in the market," said David Kirsch, director of market intelligence services at PFC Energy in Washington.
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