World oil prices advanced today on news of plunging crude inventories in the US and as investors tracked stock market gains.
New York's main contract, West Texas Intermediate crude for delivery in February, added 50 cents to $101.09 a barrel. Brent North Sea crude for March delivery was up 52 cents to $111.18 in London.
The US Department of Energy said today that the country's crude reserves plunged 3.4 million barrels in the week ending January 13. That confounded market expectations for a gain of 2.4 million barrels, according to analysts, and indicated strengthening demand in the world's biggest oil consuming nation.
However, the DoE also said that petrol reserves jumped 3.7 million barrels last week. Distillates, including diesel and heating fuel, added 400,000 barrels.
The weekly snapshot was pubished a day later than usual owing to a public holiday in the US on Monday.
Meanwhile, European stock markets rallied today following positive government bond sales by France and Spain. Investor sentiment was also boosted by encouraging US economic data and International Monetary Fund plans to stock its coffers for crisis fighting.
The IMF said yesterday that it planned to add $500 billion to its war chest, a move understood to be aimed at coping with the fallout from the eurozone crisis and preventing a global recession.
