Oil steady at $118, US crude inventories rise

Oil price nears $120

Oil steadied today as US government data showed crude stocks rising and refiners cranking up runs ahead of the summer driving season, easing supply worries that sent prices to near $120 a barrel.

US crude for June was up 6c at $118.03 a barrel at 1:34 pm. The May contract expired yesterday at $119.37 after briefly hitting a record $119.90. London Brent crude rose 24c to $116.19 a barrel, after hitting a record $116.75 the previous session.

US crude oil stocks rose 2.4 million barrels last week, according to the US Energy Information Administration, above analyst forecasts.

The build helped counter concerns about exports from Nigeria and the North Sea that pushed crude higher earlier this week, while a 4.2% point rise in US refinery runs helped counter worries that low levels of fuel production ahead of summer holiday travel.

Despite signs refiners were increasing activity, US gasoline and distillate stocks fell more than analysts had expected, helping stem an earlier slide in prices.

Oil prices have jumped more than five-fold since 2002 as global supplies stretch to keep pace with surging demand from emerging economies such as China.

President George W. Bush today said he was concerned about record high crude oil and gasoline prices, which have weighed on consumers already stung by the nation's wider economic problems.

Energy producers meeting with consumers in Rome this week said the world might have to live with high oil prices to ensure