Oil prices see big rebound after US supply report

NEW YORK (AFP) — Oil prices staged a strong rebound Wednesday as traders rushed back into the market after an unexpectedly sharp decline in US motor fuel stockpiles.

New York's main contract, light sweet crude for September delivery, rallied 4.58 dollars to close at 126.77 dollars a barrel, in a dramatic reversal from its downward trend of the past weeks.

Brent North Sea crude for September rallied 4.39 dollars a barrel to settle at 127.10 dollars a barrel.

The US Department of Energy (DoE) said Wednesday that gasoline or petrol inventories sank by 3.5 million barrels in the week ending July 25.

That surprised traders because market expectations had been for a weekly gain of 400,000 barrels.

The DoE added that crude reserves fell by 100,000 barrels. That was the second weekly decline in a row and compared with analysts' consensus forecasts for ...