Oil prices rose this evening as traders reacted to a larger than expected drop in US distillate stockpiles, indicating strong demand for heating fuel in the world's biggest economy ahead of winter.
New York's main contract, light sweet crude for delivery in December, rose 91 cents to $93.10 a barrel. Brent North Sea crude for December delivery gained $1.12 to $110.66 in late London deals.
The US Department of Energy said that distillate stockpiles, which include heating fuel, slumped 3.6 million barrels last week. Analysts had forecast a fall of 1.5 million barrels.
Oil prices fell yesterday after Greece's shock call for a referendum on the latest EU bail-out plan revived fears of a Greek default that could sap the global economy and, in turn, demand for oil.
German Chancellor Angela Merkel and French President Nicolas Sarkozy summoned Greek Prime Minister George Papandreou for talks today after his referendum plan raised the spectre of Greece's exit from the euro.
