US oil prices on Wednesday soared to their highest level in two years after news that US energy stockpiles fell across the board last week, suggesting strengthening demand.
New York's main contract, light sweet crude for December, jumped to 87.81 dollars per barrel, up 1.09 dollar from Tuesday's closing level.
London's Brent North Sea crude for December rallied to 88.96 dollars, before pulling back to 88.93 dollars, up 63 cents.
Oil prices had fallen on Tuesday in profit-taking, snapping a six-day winning streak on the back of a weaker US currency.
However, the market bounced back Wednesday as the US Department of Energy (DoE) said US crude inventories tumbled 3.3 million barrels in the week ending November 5, confounding expectations.
"Oil prices rebounded ... and rose above 87 dollars per barrel, supported by a bullish report which showed a large drawdown in crude, gasoline (petrol) and distillate oil inventories," said analyst Myrto Sokou at the Sucden brokerage in London.
"It was the report that ... improved (market) sentiment ahead of the G20 meeting later this week."
The DoE said gasoline stockpiles slid by 1.9 million barrels, more than double forecasts for a 900,000-barrel drop.
Distillates, which include diesel and heating fuel, slumped five million barrels. Analysts had penciled in a far smaller drop of two million barrels.
Oil also won modest support from better-than-expected US new jobless claims data which showed a fall of 24,000 to 435,000 in the week ending November 6.
That was well below the 450,000 expected by most economists and the lowest level since early July, when claims fell to 427,000.
