Oil prices in the global markets have risen amid news of a decline in US petroleum inventories, with Brent North Sea crude for February climbing USD 1.52 to end at USD 110.36 per barrel in London trade.
AFP reported said that oil prices rallied after the US Department of Energy said that the nation’s crude oil supplies fell last week by a million barrels, less than analyst expectations for a drop of 1.3 million.
New York's main contract, West Texas Intermediate for January, rose by USD 1.58 to close at USD 89.98 a barrel, the highest one day price rise in a month.
Andy Lipow of Lipow Oil Associates, a consulting firm based in Houston, Texas said that “The market overall was supported by a decline in crude oil inventory this week, as well as an increase in refineries runs."
The economy of the United States, which is the world's biggest consumer of crude, is forecast to tip into recession if American lawmakers do not reach a deal by the end of the month to avert a fiscal cliff of tax hikes and spending cuts.
