World crude oil prices rebounded for a second day on Thursday amid concerns over Iran, as U.S. crude reserves fell.

New York's main contract, light sweet crude for delivery in July, added 36 cents to settle with 69.50 dollars per barrel.

In London, Brent North Sea crude for July delivery climbed 45 cents to 67.43 dollars per barrel.

The United States and the European Union on Thursday urged Iran to accept the six-power proposal as the meeting of the board of governors of the International Atomic Energy Agency began a debate on Iran's nuclear issue.

The six powers have urged Iran to respond before a G8 summit in mid-July. If Iran rejects the package, the Western powers may push for UN-backed sanctions, a step China and Russia have resisted, diplomats say.

U.S. Energy Department reported Wednesday that commercial crude oil supplies fell by 900,000 barrels to 345.7 million barrels last week, well above the upper end of the average range for this time of year.

The country's gasoline reserves, which are closely watched as Americans take to the roads for summer holidays, rose by 2.8 million barrels last week to 213.1 million, according to the department's weekly inventories report.

Stockpiles of distillates, including diesel and heating oil, were also up by 2.1 million barrels to 122.8 million last week.

Source: Xinhua