LONDON, Feb 19: World oil prices rallied on Thursday as traders reacted to a shock fall in US crude inventories which signalled a possible turnaround in American energy demand, analysts said.

New York’s main futures contract, light sweet crude for delivery in March, won $2.69 to $37.31 per barrel.

Brent North Sea crude for April delivery added $1.56 to $41.11 a barrel.

The US government’s Energy Information Administration said on Thursday that American crude stockpiles fell 200,000 barrels in the week to February 13.

News of the first weekly drop since December wrong-footed the market because market expectations had been for a gain of 2.7 million barrels, according to Dow Jones Newswires.

The EIA added that US gasoline or petrol reserves increased by 1.1 million barrels last week. Analysts’ forecasts had been for a 600,000-barrel drop.

Stockpiles of distillates, including diesel and heating fuel, slid 800,000 barrels, roughly in line with market expectations.

The EIA report -- published one day later than normal due to a US public holiday on Monday -- is a key focus because the United States is the world’s biggest energy consuming nation and is currently mired in a recession.

“This report… could easily be overshadowed by fresh economic headlines,” said Jim Ritterbusch, president of the trading advisory firm Ritterbusch & Associates.

Oil prices have slumped from record highs above 147 dollars a barrel reached last July, as the market has been hit by plunging energy demand because of the global economic slowdown. —AFP