Thursday June 11, 09:56 AM
Oil price hits 2009 peak above $72
LONDON (AFP) - Oil prices surged past 72 dollars on Thursday, their highest level so far this year, in response to a big drop in US crude reserves, oil industry analysts said.
New York's main futures contract, light sweet crude for delivery in July, surged as high as 72.18 dollars per barrel in early morning trade -- a level last seen on October 20.
The contract later eased back to 71.61 dollars, but still up 28 cents from Wednesday's close. Brent North Sea crude for July delivery meanwhile advanced 20 cents to 71.00 dollars.
The US Energy Information Administration (EIA) said Wednesday that US crude inventories tumbled 4.4 million barrels last week -- far more than market expectations of a 700,000-barrel drop.
"The strength of the current bullish trend in crude was underscored again yesterday by the oil market ability to advance on its own despite some weakening in the equity markets combined with a rebound in the US dollar," said ODL Securities analyst Marius Paun.
"The driver was also the surprise EIA data showing a much larger than expected draw in crude stocks, bringing significant support to a market looking for any reason to justify its higher moves."
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