World oil prices rose above $77 a barrel today as the US government reported a drop in stockpiles of gasoline in the nation's peak demand season for motor fuel.
New York's main futures contract, light sweet crude for delivery in July, rose 40 cents to $77.34 a barrel.
Brent North Sea crude for August delivery gained 57 cents to $77.57 in late London trade.
The US Department of Energy said today that gasoline (or petrol) inventories fell by 600,000 barrels last week.
The report is a key weekly event for traders because the US is the world's biggest consumer of oil, followed by China. US demand for gasoline is meanwhile entering its peak summer holiday season during which many Americans drive long distances.
The Department of Energy added that US crude stockpiles rose by 1.7 million barrels last week, a surprise for analysts who had forecast a drop of 1.3 million barrels.
Crude futures had already rallied yesterday, along with stock markets as investors grew more confident about the global economic recovery.
So far this week, oil prices have also benefited from a weaker dollar, which tends to boost demand for dollar-priced commodities as they become cheaper for buyers holding stronger currencies.
