Oil prices rallied strongly to around $51 a barrel today after shrugging off a hefty rise in US crude stocks and focusing on a possible gasoline shortfall ahead of the US driving season.
US light crude touched a high of $50.94 a barrel before easing to $50.70, up 57 cents, while in London Brent crude futures also gained 57 cents to $51.54.
Prices are still nearly 13 per cent below the record-high of $58.28 for US crude hit in early April as robust production from Middle East OPEC countries has swelled world supplies.
Government data released yesterday showed US crude stocks rose by 2.6 million barrels last week to 327 million barrels, their highest since July 1999. The rise, the 11th in the past 12 weeks, was more than double analysts' forecasts.
Gasoline inventories in the world's biggest energy consumer rose 2.2 million barrels, also more than expected, to 213.5 million barrels, 11.3 million barrels higher than a year ago