Oil prices struck a 10-month high above $73 a barrel today on strong summer driving demand in the United States.
London Brent crude, seen as the best price gauge of the global oil market, rose 29 cents to $72.92 a barrel by 1752 GMT, after rising over $73 earlier, the highest since August 25. U.S. crude gained 14 cents to $71.23.
Experts have been concerned about US gasoline supplies as domestic refiners strain to meet rising summer demand. US refiners have faced a long, deep maintenance season that helped draw down refined product inventories ahead of the summer.
Although crude stocks in the United States are at a nine-year high, some analysts are forecasting they will drop rapidly as refiners there return from maintenance. The next snapshot of US fuel stocks is due on Thursday, a day later than usual because of the Independence Day holiday on July 4th.
The International Energy Agency, representing 26 consumer nations, repeated its call today for the Organization of Petroleum Exporting Countries to increase output.
So far, the group, which pumps over a third of the world's oil, has resisted, arguing crude oil supplies are ample and any tightness in refined products is beyond its control.
According to a Reuters survey, OPEC kept a lid on output in June, pumping 30.19 million barrels per day. The 10 members subject to production limits produced 26.64 million bpd, up 50,000 bpd against May.