Reply #3: Oil climbs to $71 on strong US gasoline demand

[ozymandius]

LONDON/SINGAPORE (Reuters) - Oil climbed to $71 a barrel on Thursday after a smaller-than-expected rise in U.S. gasoline stocks reignited talk of resilient oil demand in the world's top consumer, moving inflation worries to the back burner.

U.S. light crude for August rose 64 cents to $70.97 a barrel, adding to gains of nearly a dollar on Wednesday, amid a gasoline-led rally.

European benchmark Brent climbed 65 cents to $69.82.

Gasoline jumped 3 percent on Wednesday after U.S. government data showed a 300,000-barrel increase in gasoline stocks, despite an increase in refinery utilization, against earlier expectations of a bigger 1.2 million barrel rise.

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