Oil pushed further above $62 on Thursday after the International Energy Agency said OPEC has tightened output too much and in response to a steep fall in gasoline stocks in top consumer the United States.
U.S. crude was up 63 cents at $62.64 a barrel by 1100 GMT, after it settled up 12 cents on Wednesday. London Brent rose 58 cents to $68.42 ahead of its expiry on Friday.
"OPEC supply curbs since last autumn have coincided with two quarters of heavy OECD stock draws and output remains below the level needed to generate the usual spring crude stock build," said the IEA, energy adviser to 26 industrialized nations.
Current OPEC production could mean further tightening in stocks in the months to come, given little spare capacity and apparently sharp draws in commercial inventory since the last quarter of 2006, it said.
Sharply falling United Sates gasoline stocks shown in government data on Wednesday added to the tight outlook.
"The market probably tipped a bit higher on the relatively bullish IEA market report," said Harry Tchilinguirian of BNP Paribas. "I think more importantly the market is still focused on what is happening in U.S. statistics, though we're still puzzled as to the strength of the numbers."
The figures showed gasoline stocks in the world's top consumer slid 5.5 million barrels last week ahead of the peak summer demand season, far more than a 1.4 million-barrel drop analysts had forecast and taking stocks nearly 5 percent below the same time last year.
Weekly demand for gasoline in the United States reached a new record for April despite higher prices, the government said.
(Reuters, 12/04/2007)