Oil prices rose this evening after US government data showed that crude and petrol stockpiles in the world's largest energy consumer had fallen by far more than expected last week.
US crude rose as high as $74.40 before easing back to $73.31 a barrel, up 45 cents. London Brent rose 82 cents to $74.57.
The US Energy Information Administration said crude oil inventories fell by 1.9 million barrels last week, a far larger drop than the 100,000 barrel dip predicted by market analysts.
Petrol inventories were also down sharply, sliding 2.6 million barrels. The market had expected a 500,000 barrel fall. A drop in stockpiles is seen as an indicator of stronger demand for energy.
Demand for oil products in the US over the last four weeks has been more than 8% higher than the same time a year ago.
Prices were also supported by firm stock markets. The US dollar firmed against the euro, sapping some of oil's gains. A strong US currency makes dollar-priced commodities more expensive for holders of other currencies.
