Oil prices surged above 32 dollars a barrel on Wednesday morning after US stock figures showed reserves contracted sharply last week.
The price of benchmark Brent North Sea crude oil for December delivery rose almost a dollar to 32.05 dollars a barrel from 31.13 dollars, before easing back slightly to 31.85 dollars.
Prices had fallen on Tuesday as the market discounted a wider Middle East conflict that could disrupt oil supplies following the deal between Israelis and Palestinians at Sharm El-Sheikh.
But attention was drawn back to concern about sharply contracting stock levels, dealers said. Last week, US oil stocks fell by 3.1 million barrels to 280.7 million, the American Petroleum Institute said.
Low stock levels sent oil prices spiraling to 10-year high points above 35 dollars a barrel last month, a level that was regained last week briefly as the Middle East crisis flared up -- LONDON (AFP)
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