Oil prices inch upwards after US inventory data

LONDON (AFP) - World oil prices nudged higher yesterday following two days of losses despite an announcement by the US government that US stockpiles of gasoline had surged last week.

In London, Brent North Sea crude for September delivery rose four cents to 75.12 dollars per barrel.

New York's main oil futures contract, light sweet crude for delivery in September, gained 11 cents to 73.67 dollars per barrel.

"The build in gasoline stocks was the most significant surprise," said Citigroup analyst Tim Evans.

The US Department of Energy said that gasoline, or petrol, stocks grew by 800,000 barrels in the week that ended July 20. Analysts had expected the data to reveal a drop of 125,000 barrels owing to high demand for motor fuel as Americans take their summer holidays.

Also occupying the market's attention was news of further unrest in Nigeria's oil-rich Niger Delta region.

Gunmen yesterday shot and lightly wounded a visiting American scholar at the premises of a newspaper in Port Harcourt, witnesses said.

The Niger Delta has been riven by unrest including a spate of kidnappings targeting foreign oil workers as militias seek a greater share of oil revenues for local people.

Crude oil prices had meanwhile fallen sharply on Tuesday, retreating further from near record peaks amid an improved outlook for energy supplies.

This week, the price of oil has sunk in the wake of news on Sunday that the Organization of the Petroleum Exporting Countries (OPEC) could raise its crude output to prevent skyrocketing prices.

"Comments by OPEC members over the past few days indicating that the group would raise production levels if necessary helped soothe market concerns over future supply availability, weighing on prices," Barclays Capital analysts said.

"We would argue, however, that there is nothing in those remarks to suggest an imminent change in OPEC policy."

OPEC has repeatedly said that the market was well-supplied with oil, despite frequent calls from the International Energy Agency to pump more crude.

However, OPEC President and United Arab Emirates Energy Minister Mohammed al-Hamli said on Sunday that surging prices were a concern -- and that the group was prepared to pump more oil if needed.

OPEC holds its next output meeting on September 11 in Vienna, which is home to the 11-nation cartel's headquarters.

The price of Brent North Sea crude had struck 78.40 dollars per barrel on July 16, which was close to its all-time high of 78.64.