Oil prices rose above $142 a barrel this evening after US figures showed a bigger than expected fall in crude oil reserves last week in the world's largest energy consumer.
US crude was up $1.63 at $142.60 a barrel, while London Brent gained $2.24 to $142.91. Both contract hit all-time highs close to $144 on Monday.
The US Energy Information Administration report showed a two million barrel drop in crude oil stockpiles last week, more than the 100,000 barrel fall analysts had predicted. Petrol stocks rose by 2.1 million barrels, when these had been forecast to fall 200,000 barrels. Distillates rose by 1.3 million barrels, slightly lower than forecasts for a 1.9 million barrel increase.
Tension between Iran, a major oil exporter, and Israel has helped to lift prices this week, and analysts said that could remain a factor ahead of the US Independence Day holiday on July 4.
Adding to concern about supply, the International Energy Agency on Tuesday cut its global oil supply forecast for the next five years, signalling little relief from high oil prices.
The weak dollar also supported crude. The euro extended earlier gains against the dollar to hit a two-month high on Wednesday as traders anticipated the European Central Bank would raise interest rates on Thursday.
Investors have been using oil and other commodities as a hedge against the weaker dollar and inflation, helping to fuel the market's rally of more than 40% since the start of the year.
