World oil prices climbed today as traders set aside news of rising crude inventories in top global consumer the US, a day after the market fell sharply on fears of weaker energy demand.
New York's main contract, West Texas Intermediate light sweet crude for September delivery, gained $1.20 cents to $87.85 a barrel. Brent North Sea crude for October delivery jumped $1.77 to $110.90.
The US Department of Energy said today that American crude reserves soared 4.2 million barrels in the week ending August 12, confounding market expectations for a drop of 600,000 barrels, according to analysts.
But petrol inventories sank 3.5 million barrels, which was far more than forecasts of a 1.2 million barrel drop, and indicated keen demand.
Oil prices had fallen yesterday as worries about global economic growth continued to cast a shadow over the strength of energy demand. Figures showing the euro zone economy virtually stalling in the second quarter, led by powerhouse Germany, was the main concern.
Traders shrugged off a euro zone meeting that failed to land a killer blow in the battle to restore debt confidence. Yesterday's summit of French President Nicolas Sarkozy and German Chancellor Angela Merkel, who both called for the formation of a eurozone economic government to help tame the bloc's debt crisis, did little to alter sentiment.
They also said they would propose a new financial transaction tax.
