The November New York Mercantile Exchange (Nymex) crude futures were traded at $22.92 per barrel at 0710 GMT, soaring 62 cents from New York's close. The market had earlier traded as high as $23.

Data from the American Petroleum Institute (API), released after the New York market closed on Tuesday, showed weekly crude stocks in the world's largest oil consumer were lower by 7.1 million barrels at around 299 million barrels.

This compared with market expectations that the stocks would be down just 1.25 million.

The price rise in Asian day extended the surge in the New York on Tuesday, when November Nymex crude jumped $1.03 per barrel.

Traders said they expected prices to climb further, resuming the rally that was halted last week by a massive speculative sell-off.

"I really think after today that it's bottomed and hopefully with these (API) numbers, they will hold this market up," said broker Mark Ammirati of E.D.&F. Man International in New York.

Opec producers this week have been trying to bolster market sentiment following last week's $3.64 or 15 per cent sell-off, which occurred partly on worries Opec's self-imposed supply restraint was relaxing.

A further blow came on Monday when the International Energy Agency said the world's oil stocks were falling more slowly than had been expected.

Kingpin producers Saudi Arabia and Iran tried to calm market nerves by saying compliance with the output cuts was strong and the policy would stay firmly in place until March and possibly longer.

Traders said the latest API figures gave part credence to the producers' assurances.

"They (producers) were pretty much saying 'we are complying above the line', and these (API) numbers kind of prove that," Ammirati said.

Prices have rapidly been erasing last week's losses, already rising more than two dollars.

Market bulls will target late September's 33-month high of $25.12 per barrel to see if the market can go to greater heights.

But some brokers said the bullish market sentiment might be tempered in coming days by uncertainty over whether the US Department of Energy (DOE) survey on stocks would be as bullish as the API report.