Do you know Oil Rises above $72?

Oil rose above $72 a barrel on Thursday, heading for a third consecutive day of gains, after data showed falling U.S. crude and product inventories, adding to signs that oil demand may have bottomed out.

Prices have gained more than 5 percent since last Friday's settlement, and more than doubled since last winter's low $30s as investors have started to price in expectations for an economic recovery, which should boost consumption.

U.S. crude stocks fell by a sharp 4.4 million barrels last week, against expectations for a modest draw of 400,000barrels, while products inventories also dropped, the Energy Information Administration (EIA) reported.

U.S. light crude for July delivery rose 76 cents to $72.09 a barrel by 0447 GMT, a near eight-month high, having gained$1.32 on Wednesday to settle at $71.33 after the U.S. inventory data was released.

London Brent crude gained 63 cents to $71.43.

"Oil prices continue their march to, and then beyond, $75 per barrel. Our forecast of an average $85 per barrel for 2010appears well on track, and we believe further upside price risk exists incoming quarters," the analysts also said.

U.S gasoline inventories fell 1.6 million barrels last week against forecasts for a 800,000-barrel build as gasoline demand rose by 0.4 percent over the four week period, the start of the U.S. summer driving season, the EIA said.

Distillate stocks, including diesel and heating oil, fell by 300,000 barrels, versus analysts expectations for a 1.4million barrel increase.

The EIA report follows data from the American Petroleum Institute released late Tuesday, which showed a 6 million barrel draw in crude oil stocks, a 27,000 barrel rise in gasoline inventories and a 19,000 barrel gain in distillates.