Oil rises for fourth day, trades at US$77

By 0948 GMT, U.S. crude oil futures were trading 38 cents higher at US$77.05 GMT, having hit US$77.48, the highest price since Dec. 4.

ICE Brent crude futures gained 21 cents to US$75.63.

On Wednesday, oil prices rose more than 3 percent, the biggest one day percentage gain in about five weeks, after weekly data from the U.S. Energy Information Administration (EIA) data showed a larger-than-expected fall in crude inventories in the United States over the past week.

Inventories of key oil products, such as gasoline and heating oil, also fell in the world's top consumer.

The U.S. data helped switch market momentum to an up trend this week following a slide to below US$69 after a period of narrow range trading earlier in December, investors said.

“I think the market is heading towards the upside, probably will hold the level by the end of the year,” said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.

Oil inventories have fallen elsewhere in the world over the past week.

Gasoline and gas oil inventories held in independent storage in Europe's oil hub also fell over the past week on increased demand ahead of the holidays, Dutch oil analyst Pieter Kulsen said on Wednesday.

In Japan, the world's third-largest oil user, commercial crude stocks eased last week from an eight-week high hit the week before.

Support came from rallies in the equity market.

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