Oil jumps 2 percent as U.S. inventories fall
NEW YORK (Reuters) - Oil jumped more than 2 percent on Wednesday after a sharp drop in U.S. crude and gasoline stocks revived supply concerns in the world's top consumer.
U.S. crude settled up $1.78 at $73.51 a barrel, while London Brent gained $1.58 to $72.13 a barrel.
Crude oil inventories fell by 3.5 million barrels in the week to August 24 after storms in the Gulf Coast helped delay imports, the Energy Information Administration reported on Wednesday.
Gasoline stocks dropped 3.6 million barrels, bringing them to a record low of just 20 days of supply, the EIA added.
"On balance, the EIA report is constructive. Crude stocks fell as imports dropped sharply, probably affected by Hurricane Dean," said Andy Lebow of MF Global.
"Gasoline supplies fell further, putting us deeper into a hole as there is a fairly robust refinery maintenance season ahead of us."
Some analysts have forecast global supply could struggle to keep pace with demand later this year unless the Organization of the Petroleum Exporting Countries ramps up oil production.
OPEC officials have steadfastly said supplies are ample and blame refinery problems for fuel tightness.
Venezuelan Oil Minister Rafael Ramirez said on Wednesday global oil inventories were still above average levels, and that the producer group should maintain current output levels when it meets next in September 11 in Vienna.
Ramirez added Venezuela was concerned about the credit crisis but did not think it would effect oil demand.
OPEC Secretary-General Abdullah al-Badri on Tuesday also suggested the cartel would leave output levels steady, but he added the crisis in U.S. subprime loans was clouding the demand growth picture.
The deepening crisis in U.S. subprime mortgages -- loans made to high-risk borrowers -- has rattled financial markets and knocked U.S. consumer confidence to its lowest level in nearly two years.
Oil has held up well compared to other commodities, but the U.S. benchmark has fallen from an all-time high of $78.77 on August 1 as some investors worry that a global credit crunch will take its toll on the wider economy and erode oil demand.
(Additional reporting by Peg Mackey in London; Luke Pachymuthu in Singapore)
