Brent crude oil prices rose towards $110 a barrel this morning after an industry report showed a larger than expected decline in US petrol supplies and upbeat economic data outweighed concerns over the euro zone debt crisis.
A meeting between French and German leaders yesterday did not calm investor concern about Europe's sovereign debt problems, but better than expected US industrial production figures helped bolster sentiment.
Brent crude rose 75 cents to $109.88 a barrel. US crude was up 59 cents at $87.24.
US stockpiles of petrol fell 5.4 million barrels in the week to August 12, which was more than forecast, industry group the American Petroleum Institute (API) said last night. A fall in stockpiles is an indication of stronger demand.
The US government's Energy Information Administration releases its supply report later today.
