LONDON, Feb 11: Oil prices climbed on Wednesday as the market digested surging crude stockpiles in the United States and the latest demand forecasts from the International Energy Agency.

Brent North Sea crude for delivery in March climbed 59 cents to $45.20 a barrel in London.

New York’s main oil futures contract, light sweet crude for March, gained 40 cents to $37.95 per barrel.

The US Department of Energy (DoE) said on Wednesday that American crude stockpiles soared by 4.7 million barrels in the week ending February 6. That was higher than market expectations of a 3.0-million barrel gain.

After publication of the DoE report, oil prices had fallen as low as $44.45 in London and $36.91 in New York, before clawing back ground.

“The bigger-than-expected build in crude inventories sent oil lower once again with prices continuing to push even further below the $40-mark as a result,” said CMC Markets dealer Jimmy Yates in London. eserves of gasoline or petrol declined by 2.6 million barrels, confounding expectations for a gain of 400,000 barrels.

Distillates inventories, which include heating fuel and diesel, sank by one million barrels. Analysts had pencilled in a drop of 1.5 million barrels.

Despite oil rising in value on Wednesday, they remain massively off record highs above $147 reached last July when fears of supply disruptions had sent them rocketing. Since then, prices have plunged as the global economic slowdown hits global demand for oil. The United States meanwhile is the biggest energy consuming nation.

The International Energy Agency (IEA) meanwhile on Wednesday again cut its forecast for global oil demand this year, but warned about a future supply crunch because of current low investment levels.

The energy watchdog for industrialised nations forecast that global oil demand would measure 84.7 million barrels per day (bpd) on average in 2009 -- 570,000 bpd less than its last forecast made in January.—AFP