Oil surged nearly $4 to a record over $112 a barrel today after a US government report showed a sharp drop in US inventories ahead of the summer driving season.
US crude rose $3.71 to $112.21 a barrel by 5pm, breaking the previous record high of $111.80 hit on March 17. London Brent jumped $3.02 to $109.36 a barrel.
US crude stockpiles fell 3.2 million barrels last week as imports declined, countering analyst expectations for a build, while gasoline and distillate inventories also tumbled, the US Energy Information Administration reported.
Concern about diesel supplies amid strong demand in Europe and Asia also supported crude this week, with London gas oil hitting an all-time high of $1,026.75 a tonne today.
The US Department of Energy also reported that energy stockpiles in the US had dropped across the board during the week ending April 4.
Crude stockpiles slumped by 3.2 million barrels and gasoline inventories shed 3.4 million barrels, the DoE said. Both falls were higher than analysts' forecasts.
Traders are particularly focused on gasoline supplies ahead of the peak demand US driving season, starting in May, when many Americans hit the roads for their holidays.
However yesterday, the US Department of Energy said it expected US gasoline consumption for the upcoming season to decline for the first time in two decades.
