Oil prices climbed above $72 today as demand surged and Asian markets rebounded.

For July delivery, US crude gained 74¢ to $72.25 at 06.33 GMT, while ICE Brent crude increased 52¢ to $72.26 a barrel, according to Reuters.

US crude prices added 4% yesterday, their biggest gain in nearly eight months, after the Energy Information Administration said US oil-product supplies fell last week.

Oil demand in the US rose 7% over the past four weeks led by a 16% jump in demand for distillates, the EIA revealed.

The Nikkei recovered from a six-month low after a government official said China remains committed to a long-standing goal of diversifying foreign exchange reserves.