Oil prices climb higher, reach $71

LONDON: World oil price extended gains on Friday as the market was caught between conflicting supply issues.

New York's main contract, light sweet crude for delivery in July, rose 54 cents to 70.40 dollars per barrel in pit trading.

In London, Brent North Sea crude for July delivery climbed 65 cents to 69.87 dollars per barrel in electronic deals.

Crude futures rose "after plunging yesterday on news of big rises in US gasoline stocks", analysts at the Sucden brokerage firm said.

"The market is likely to remain unpredictable with support coming from the upcoming hurricane season and ongoing geopolitical troubles with Iran and Nigeria, but pressure (on prices) comes from signs of slowing demand growth and rises in gasoline stocks," they added.

Motor fuel stocks are widely watched at the moment as the United States gears up for the summer driving season which starts with this weekend's Memorial Day break when many Americans take to the roads for a vacation.