World oil prices rose this evening, extending this week's strong run on the back of falling US fuel inventories and growing global economic optimism.
New York's main futures contract, light sweet crude for delivery in March, added just seven cents to $77.30 a barrel. London's Brent North Sea crude for March gained 21 cents to $76.27 a barrel.
The US government's Department of Energy revealed today petrol reserves sank by 1.3 million barrels in the week ending January 29. That confounded market expectations for a gain of one million.
The department added that inventories of distillates - including diesel and heating fuel - fell 900,000 barrels. Analysts had pencilled in an 800,000-barrel decline.
Crude oil stockpiles, meanwhile, leapt by 2.3 million barrels. Market expectations had been for no change.
The department added that US refiners cut back last week to operate at 77.8% of capacity. That was the lowest rate in at least 20 years, outside the immediate aftermath of a hurricane.
Crude oil prices have soared this week as the market grew more optimistic about global economic growth and energy demand, analysts said. Investor sentiment was buoyed as equity markets put in strong performances and manufacturing data from the US reassured nervous investors.
The market was also pushed higher by news of fresh unrest in Nigeria's key oil-producing region. Nigeria's main rebel group vowed yesterday to carry out fresh attacks on oil facilities in the weeks to come in the key Niger Delta region.
The Movement for the Emancipation of the Niger Delta (MEND) said it 'restates its warning to oil companies regarding their staff who they are putting in harm's way by their continued presence on our soil.'
