London: Oil rose above $142 a barrel yesterday, after US data showed a bigger-than-expected fall in crude oil stocks last week in the world's largest energy consumer.
US crude was up $1.63 at $142.60 a barrel by 1514 GMT, while London Brent was up $2.24 at $142.91 a barrel. US crude hit a record high of $143.67 on Monday.
The US Energy Information Administration report showed a two million barrel drop in crude oil inventories last week, more than the 100,000 barrel fall analysts had predicted.
Gasoline stocks rose by 2.1 million barrels, when these had been forecast to fall 200,000 barrels.
Distillates rose by 1.3 million barrels, slightly lower than forecasts for a 1.9 million barrel increase.
"The two million barrel draw in crude stocks was supportive, as imports remain relatively low for this time of year," said Tim Evans, energy analyst, Citi Futures Perspective.
Iran-Israel tension
Tension between Iran, a major oil exporter, and Israel has helped to lift prices this week, and analysts said that could remain supportive ahead of the US Independence Day holiday on July 4.
"There could be short-covering as Iranian-Israeli tension means few will want to go short into the long weekend," said Mike Wittner, analyst at Societe Generale.
Adding to concern about supply, the International Energy Agency on Tuesday cut its global oil supply forecast for the next five years, signalling little relief from high oil prices.
The weak dollar also supported crude. The euro extended earlier gains against the dollar to hit a two-month high yesterday as traders anticipated the European Central Bank would raise interest rates today.
