Oil prices rise on increased U.S. stocks

Oil prices rise on increased U.S. stocks

Oil prices rose on Thursday but remained around US$63 per barrel
as an increase in crude reserves in the United States eased
worries of tight supplies, dealers said.

New York's main contract, light sweet crude for delivery in
September, added 10 U.S. cents to $63.35 per barrel in electronic
trade.

In London, the price of Brent North Sea crude oil for delivery
in October gained 24 cents to $62.80 a barrel.

Recent supply fears, heightened by production outages at U.S.
refineries, had pushed New York futures to a historic high of
$67.10 last Friday, and to $66.85 in London on Monday.

Crude prices tumbled on Wednesday as the market reacted to
data showing stronger U.S. reserves of crude but sharply lower
gasoline stocks.

"I think the crude inventory is still too high to justify 70
dollars so the market got ahead of itself," said Tony Nunan,
manager for energy risk management at Mitsubishi Corp's
international petroleum business in Tokyo.

The weekly U.S. Department of Energy (DoE) petroleum report
released on Wednesday showed crude oil inventories rose by 0.3
million barrels to 321.1 million barrels in the week to Aug. 12
-- above the upper end of the average range at this time of the
year.

It said gasoline stockpiles fell by 5.0 million barrels in the
week to Aug. 12, the seventh straight weekly decline and was far
more than forecasts of a 1.5-million-barrel drop.

The decline, which came as U.S. oil companies drew down their
stocks to cope with summer driving demand, put levels of gasoline
supplies "near the bottom end of the average range" for this time
of year, the DoE said.

Stockpiles of distillate fuel, which make heating oil and
diesel, increased by 1.2 million barrels to 131.1 million, in
line with market expectations of a 1.6-million-barrel increase.
-- AFP