Oil prices climb on firm US demand

World oil prices rose on Thursday, boosted by stronger US demand but caution over a slowing Chinese economy limited gains, analysts said. Brent North Sea crude for delivery in July grew 20 cents to $103.24 a barrel in London morning deals. New York's main contract, West Texas Intermediate (WTI) light sweet crude for July, added 50 cents to $94.24 per barrel. "Prices have bounced up in reaction to a drop in US inventories," Kelly Teoh, market strategist at IG Markets in Singapore, told AFP. "While the market has been very data-sensitive, the overall tone for commodities still remains soft." The US Department of Energy on Wednesday said crude stockpiles in the United States plunged 6.3 million barrels in the week ended May 31, much more than analysts expected, with the average estimate pegged at a 400,000-barrel drop. A decline in stockpiles supports crude prices as it suggests a pick-up in oil demand. Gasoline demand meanwhile traditionally rises during the US summer driving season, which is currently underway and sees Americans take to the roads for their holidays. Michael McCarthy, chief market strategist at CMC Markets in Sydney, said however that dealers remained cautious ahead of fresh Chinese data. He told AFP that "oil futures will be weighed if there is a slowing trend" in China's trade data for May, which will be released on Friday. The National Bureau of Statistics in Beijing will unveil figures for industrial production, retail sales and inflation on Saturday. Developments in China are closely watched as it is the world's second biggest economy and largest energy consumer. The International Monetary Fund recently cut its 2013 growth forecast for the country to 7.75 percent from an earlier projection of 8.0 percent.