Fin24

Oil resumes strong run

2011-01-13 10:08

Singapore - Oil prices rose for a fourth consecutive day in Asian trade on Thursday on a sharp slump in crude stockpiles, indicating strong demand in the world's biggest economy, analysts said.

New York's main contract, light sweet crude for February delivery, gained 22 cents to reach $92.08 a barrel.

Brent North Sea crude for February was up 24c at $98.36.

"The dip in the US inventory is supportive of the continued (oil price) rally," said Victor Shum, senior principal at energy consultancy Purvin and Gertz in Singapore.

The US Department of Energy reported late on Wednesday that crude stockpiles sank by 2.2 million barrels last week. The decline was sharper than expected and suggested stronger demand in the world's biggest oil consuming nation.

The Commonwealth Bank of Australia said in a report that demand was being bolstered by heating oil needs as blizzards hit the US northeast.

A second snow storm that slammed into the northeastern United States has forced hundreds of flights to be cancelled and postponed in New York's airports.