oiL Stocks: Oil extends rebound toward $62

Oil inched higher toward $62 a barrel on Thursday, after soaring nearly 2 percent following a surprise draw in US crude stocks.

US crude was up 14 cents a barrel at $61.96 as of 0248 GMT, adding to a $1.13 gain on Wednesday. Prices stand near a two-month high of $62.49 touched a week ago before a bout of equity-induced weakness. London Brent crude was up 13 cents at $62.63. US crude stocks plunged 4.8 million barrels last week, against analysts forecast for a rise, after fog along the key Gulf Coast refining and transit hub disrupted imports.

"The market took this as bullish, despite the fact that the delayed crude arrivals will probably show up in imports and stocks next week and possibly the week after," said Michael Wittner, global head of energy market research at Calyon.

A 3.8 million barrel fall in gasoline stocks was also much deeper than analysts had expected, stoking concerns about summer supply amid a series of refinery glitches, while distillates stocks declined 1.3 million barrels, data showed.

Heating fuel stocks may fall further as a cold snap hits the US Northeast just two weeks before the end of winter.

"The latest weekly oil data have added to the evidence of a significant degree of market tightening relative to normal patterns," Barclays Capital said.

Oil markets have held up well amid two weeks of stock market anxiety triggered by a drop in China's main equities index, aided by fears of a US economic slow-down and exacerbated by a rally in the Japanese yen, the funding currency for many speculative bets. TradeArabia