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NEW YORK: Oil prices climbed on Wednesday on declining fuel stockpiles in the United States, indicating strengthening demand in the world's top energy consumer.
The market also received a boost from news of soaring Chinese exports and higher world oil demand growth projections by the Organisation of Petroleum Exporting Countries (OPEC).
New York's main contract, light sweet crude for April delivery, rose 60 cents to 82.09 dollars a barrel.
London's Brent North Sea crude for April delivery added 58 cents to 80.48 dollars per barrel.
Market sentiment was lifted by a report by US Department of Energy (DoE) on Wednesday that gasoline stockpiles tumbled 2.9 million barrels in the week to March 5.
That surprised the market as most analysts had expected a modest increase of about 100,000 barrels.
The DoE also said that distillates, which include diesel and heating fuel, sank by 2.2 million barrels, which was far heavier than predictions of a 700,000-barrel drop.
US crude oil inventories meanwhile climbed by 1.4 million barrels, which undershot analysts' consensus forecast for a 1.7-million-barrel gain.
"There was a bit more excitement in petroleum markets when the bulls took charge to push prices out of the recent range and up to 83 dollars before giving back one dollar," analysts at BMO Capital Markets said in a client note.
"Recent demand data is more supportive with bullish oil import data from China and strong US gasoline demand," they said.
The gasoline number was "particularly supportive" ahead of the peak-demand summer holiday driving season in the United States, which starts in May and sees many Americans make long road trips, VTB Capital analyst Andrey Kryuchenkov told AFP.
"It suggests that gasoline demand will improve significantly," Kryuchenkov said.
In Vienna on Wednesday, the OPEC oil producers' cartel slightly upgraded its forecast for modest growth in world oil demand this year, but warned that the slow pace of economic recovery was clouding the outlook.
"Given slow global economic recovery, world oil demand growth in 2010 is forecast at 0.9 million barrels per day (bpd) or 1.1 percent, to average 85.2 million bpd," OPEC said, adding the US economy will be key for demand growth."
Meanwhile, China, the second biggest oil consumer after the United States, provided further support for oil with news of an ever improving economy.
The Asian powerhouse said on Wednesday that its exports soared for the third straight month in February and at their fastest pace in three years.
Oil prices had fallen on Tuesday, under pressure from a stronger greenback, which makes dollar-priced crude more expensive for buyers using weaker currencies - and therefore tends to weigh on demand. - AFP/de
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