Oil prices rose this evening, a day after hitting a six-month high, as a US government report showed a surprise drop in crude reserves in the world's top consumer.
Crude inventories fell by 4.7 million barrels, the US Energy Information Administration said, a day after the American Petroleum Institute reported a drop in stockpiles. Analysts had forecast that stocks would rise.
US crude was up 42 cents at $59.27 a barrel, having hit $60.08, the highest level since November, on Tuesday. London Brent crude was up 46 cents to $58.40.
A forecast from the Organisation of Petroleum Exporting Countries that world oil demand in 2009 would be even weaker than previously thought and a fall in US retail sales in April limited the oil price gains.
OPEC also said in a monthly report that its production rose in April for the first time since July 2008, suggesting higher prices prompted some members to relax adherence to agreed output targets.
Adding to positive sentiment was data showing that Chinese refinery output accelerated in April and posted a near-record high on a daily basis as refiners stepped up supplies amid a recent big drawdown in inventories.
Oil has plunged from a record high above $147 a barrel hit last July, but a rally in stock markets over the last few months has helped lift crude almost 80% from a January low of $32.70 a barrel.
