Oil prices surged to a seven-month high near $72 a barrel this evening after a US government report showed a slowdown in crude imports eating away at inventories in the world's top energy user.
US crude rose to a high of $71.79 a barrel before pulling back to trade up $1.06 at $71.07. London Brent gained 95 cents to $70.57.
The gains came after the US Energy Information Administration reported that nationwide stockpiles fell by a larger than expected 4.4 million barrels last week as imports dropped by 676,000 barrels per day.
US oil imports have been running below normal in recent weeks, cutting into swollen reserves and reinforcing the perception that OPEC production cuts are starting to make their mark on consumer nations' supplies.
The cartel has agreed to cut some 4.2 million barrels per day of output since last autumn in an effort to counter slumping world oil prices and shrinking demand triggered by the economic recession.
Gains in oil prices were capped, however, by a rebound in the dollar against the euro. Oil has more than doubled from the low $30s level hit this winter as investors have started to price in expectations for an economic recovery which should boost consumption.
