The market also won support following news of soaring Chinese exports and after the Organization of Petroleum Exporting Countries (OPEC) lifted its forecast for world oil demand growth.

New York's main contract, light sweet crude for April delivery, jumped 1.19 dollars to 82.67 dollars a barrel in afternoon deals.

London's Brent North Sea crude for April delivery leapt 1.25 dollars to 81.16 dollars per barrel.

The US government's Department of Energy (DoE) announced Wednesday that gasoline stockpiles tumbled 2.9 million barrels in the week to March 5.

That surprised the market where expectations had been for a modest increase of 100,000 barrels, according to analysts polled by Dow Jones Newswires.

The DoE added distillates, which include diesel and heating fuel, sank by 2.2 million barrels, which was far heavier than predictions of a 700,000-barrel drop.

US crude oil inventories meanwhile climbed 1.4 million barrels, which undershot analysts' consensus forecast for a 1.7-million-barrel gain.

"I would say it's supportive," VTB Capital analyst Andrey Kryuchenkov told AFP in reaction to the report.

The gasoline number was "particularly supportive" ahead of the peak-demand holiday driving season in the United States, which starts in May and sees many Americans make long road trips.

"It suggests that gasoline demand will improve significantly," Kryuchenkov said.

Across in Vienna on Wednesday, the OPEC oil producers' cartel slightly upgraded its forecast for modest growth in world oil demand this year, but warned that the slow pace of economic recovery was clouding the outlook.

"World oil demand has been highly dependent upon the world economy, supported by government-led stimulus plans," OPEC said in its March report.

"These stimulus plans have already done a great job of jump-starting many sectors of the economy, including energy. However, questions remain as to how long governments will be able to afford supporting their economies."

If such supportive measures were to be phased out, it could have a negative impact on world oil demand, the oil cartel said.

"Given slow global economic recovery, world oil demand growth in 2010 is forecast at 0.9 million barrels per day (bpd) or 1.1 percent, to average 85.2 million bpd," OPEC said, adding the US economy will be key for demand growth."

Meanwhile, China, the second biggest oil consumer after the United States, provided further support for oil with news of an ever improving economy.

The Asian powerhouse said Wednesday that its exports soared for the third straight month in February and at their fastest pace in three years.

Overseas shipments grew 45.7 percent on-year last month to 94.5 billion dollars, the customs bureau said, cementing a turnaround that began in December when a year-long decline ended.

"It's a good signal that we have strong overall demand from China this year," added Kryuchenkov.

However, he cautioned that "gains could still be capped because of the dollar."

Oil prices had fallen on Tuesday, under pressure from a stronger greenback, which makes dollar-priced crude more expensive for buyers using weaker currencies -- and therefore tends to weigh on demand.

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