(Updates prices)
By Ikuko Kao
LONDON, June 11 (Reuters) - Oil jumped more than $3 to near
$135 a barrel on Wednesday after oil major BP <BP.L> said the
world's proven oil reserves were mostly unchanged last year, a
further indication of tightening global oil supplies.
Prices also rose ahead of U.S. weekly oil data, which is
forecast to show a drop in crude inventories later in the day.
U.S. crude <CLc1> leapt $3.59 to $134.90 a barrel and was
trading at $134.63 by 1340 GMT. In the past two days, it had
fallen by more than $7.
London Brent crude <LCOc1> was trading $2.79 higher at
$133.81.
The world's proven oil reserves were essentially flat in
2007 while production fell by 0.2 percent, the first decline
since 2002, BP reported on Wednesday, when it launched its 2008
Statistical Review of World Energy. []
On Tuesday, the International Energy Agency, the energy
adviser for the world's industrialised countries, sharply
lowered its projection for supply outside the Organization of
the Petroleum Exporting Countries. []
Concern over long-term oil supplies has driven the recent
spike in oil prices and prompted Wall Street banks to raise
their price forecast to about $150 and $200.
"For sure, banks tend to focus on supply. It is easy for
them to make assumptions of $200," Olivier Jakob with Petromatrix
said. "On the other side, we have to look at price impact on
demand. That's why the market is so volatile."
Oil's six-year rally has accelerated this year, with around
a 40 percent increase in prices since the start of 2008. It hit
a record high of nearly $140 a barrel last Friday.
The U.S. Energy Information Administration (EIA) will
release weekly oil stocks data at 1435 GMT on Wednesday.
Analysts polled by Reuters forecast a 1.1 million barrel
drop in crude inventories, the fourth straight week of draws.
Gasoline stocks are forecast to rise 1.2 million barrels,
the second straight weekly increase, because production rose and
demand has been hurt by high pump prices. []
In contrast, China, where oil demand is growing the most
rapidly, imported 25 percent more crude in May than a year
earlier. []
Saudi Arabia will host a meeting of oil producers and
consumers on June 22 to discuss the high prices, OPEC
Secretary-General Abdullah al-Badri told Reuters on Tuesday.
[]
Traders were sceptical that could help tame prices.
"There seems to be a feeling that a meeting in Saudi and
even an increase in production would not halt price rise in
oil," one broker said.
(Reporting by Maryelle Demongeot in Singapore;, Ikuko Kao
and Santosh Menon in London; editing by William Hardy)
