World oil prices extended their rebound in Asian trade today on data showing a bigger-than-expected decline in US petrol stockpiles during the peak demand season, analysts said.
New York's main oil futures contract, light sweet crude for September delivery, advanced 92 cents to $116.92 a barrel. It had rallied 2.99 dollars at the close of New York floor trading yesterday.
Brent North Sea crude for September was up 94 cents at $114.41, after gaining $2.32 in London trade the previous day.
"Crude has regained some of its losses over the past few trading sessions reacting to the inventory report which showed very substantial stock draws in gasoline," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.
The US Department of Energy reported yesterday that US reserves of petrol had fallen by 6.4 million barrels in the week ended August 8. It was worse than analysts' prediction for a drop of just 2.0 million barrels.
Petrol inventories are closely watched at this time of year as American motorists hit the highways for their summer vacations, typically pushing up demand for the refined fuel.
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Despite the rally, Shum said that slowing global energy demand resulting from the weakening economies of the United States, Europe and Asia was likely to weigh down on oil prices.
The market at the moment appeared to be ignoring supply-side issues that could arise from geopolitical risks, he said.