Crude oil prices sharply rebounded on Thursday on data showing a surprise fall in US crude reserves that raised the prospect of renewed demand in the world's biggest energy consumer.
New York's main futures contract, light sweet crude for delivery in March, finished at 39.48 dollars a barrel, up a hefty 4.86 dollars from Wednesday's closing level.
In London, Brent North Sea crude for April delivery settled 2.44 dollars higher at 41.99 dollars a barrel.
The US government's Energy Information Administration (EIA) said on Thursday that American crude stockpiles fell 200,000 barrels in the week ending February 13, after several weeks of significant increases.
The EIA said that US gasoline reserves increased by 1.1 million barrels last week, instead of the consensus analyst forecast of a 600,000-barrel drop.
Stockpiles of distillates, including diesel and heating fuel, slid 800,000 barrels, roughly in line with market expectations.
The EIA report - published a day later than normal due to a US public holiday on Monday - is a key focus because the United States is the world's biggest energy-consuming nation. The world's largest economy has been mired in recession for more than a year, dampening demand.
Morgan Stanley analysts Hussein Allidina and Seth Kleinman cautioned against reading the unexpected increase in US crude stockpiles as the beginning of a rebound in demand.
"Despite the hopes being pinned on President (Barack) Obama's stimulus package, we discount a demand response in the near term," they wrote in a client note.
"We are bearish on the entire crude oil complex and believe that OPEC needs to further curtail production in an effort to put a floor under prices."
Oil prices have slumped from record highs above 147 dollars a barrel last July, as the market has been hit by plunging energy demand because of the global economic slowdown.
On Wednesday, the US Federal Reserve projected the US economy would shrink 0.5 percent to 1.3 percent in 2009 and unemployment would rise to 8.5 percent or higher.
New York's main futures contract, light sweet crude for delivery in March, finished at 39.48 dollars a barrel, up a hefty 4.86 dollars from Wednesday's closing level.
In London, Brent North Sea crude for April delivery settled 2.44 dollars higher at 41.99 dollars a barrel.
The US government's Energy Information Administration (EIA) said on Thursday that American crude stockpiles fell 200,000 barrels in the week ending February 13, after several weeks of significant increases.
The EIA said that US gasoline reserves increased by 1.1 million barrels last week, instead of the consensus analyst forecast of a 600,000-barrel drop.
Stockpiles of distillates, including diesel and heating fuel, slid 800,000 barrels, roughly in line with market expectations.
The EIA report - published a day later than normal due to a US public holiday on Monday - is a key focus because the United States is the world's biggest energy-consuming nation. The world's largest economy has been mired in recession for more than a year, dampening demand.
Morgan Stanley analysts Hussein Allidina and Seth Kleinman cautioned against reading the unexpected increase in US crude stockpiles as the beginning of a rebound in demand.
"Despite the hopes being pinned on President (Barack) Obama's stimulus package, we discount a demand response in the near term," they wrote in a client note.
"We are bearish on the entire crude oil complex and believe that OPEC needs to further curtail production in an effort to put a floor under prices."
Oil prices have slumped from record highs above 147 dollars a barrel last July, as the market has been hit by plunging energy demand because of the global economic slowdown.
On Wednesday, the US Federal Reserve projected the US economy would shrink 0.5 percent to 1.3 percent in 2009 and unemployment would rise to 8.5 percent or higher.
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