NEW YORK - Oil prices jumped to near US$52 a barrel on Friday, supported by expectations of high US petrol demand as the summer vacation season begins.
US crude futures CLc1 settled up 84 cents to US$51.85 a barrel, building this week's gains to almost 11 per cent. Brent crudeLCOc1 gained 54 cents to US$50.70 a barrel.
Prices have rallied amid expectations that higher petrol demand from summer drivers will start eating away at robust US crude oil stockpiles, running near six-year highs after a flood of foreign imports.
The AAA auto and travel group said in a survey last week a record number of drivers would take to the roads over the upcoming US Memorial Day weekend, the traditional kick-off to the peak demand summer driving season.
Analysts have said a recent dip in oil prices below US$50 lured fresh fund money, with many players still bullish long-term due to demand growth from Asia and slow increases to world crude production capacity.
This week's rally turned into a surge on Wednesday after a report showing a fall in US crude inventories last week.
"Quite a few longs jumped back into the market that day and may stay that way for quite a while before liquidating," wrote Edward Meir in the Man Energy Daily Report.
Analysts predicted the decline in inventories could be followed by further erosion of US crude stocks over the coming weeks as refineries increase activity.
However, stockpiles of US crude are still near the six-year peak hit earlier this month, bolstered by Opec oil production that has climbed to a 25-year high.
US petrol inventories are also at the upper end of the average range for this time of year.
The cartel has been seeking to build global stockpiles ahead of high demand in the fourth quarter.
Most Opec ministers have so far said they see no need for any change in output policy when the cartel next meets on June 15 in Vienna.
