SINGAPORE (Commodity Online) : Global oil prices advanced towards $70 a barrel in Asian trade Wednesday mainly after the API report showed dip in US petrol stockpiles.

Light sweet crude for july delivery was seen trading at $69.66 a barrel at 12 noon Singapore time while Brent crude was at 69.97 a barrel in London.

Industry group, American Petroleum Institute on Tuesday said U.S. gasoline stockpiles dropped by 3.2 million barrels last week.

Crude inventories at Cushing, Oklahoma, the pricing point for U.S. crude, also fell from record levels, the API added. Stocks fell 772,000 barrels from a record 37.99 million,

The API also said, distillates including heating oil and diesel rose by 1.5 million barrels versus expectations of no change.

US Energy Department's Energy Information Administration is scheduled to announce its supply report later Wednesday.

All major Asian stock markets bounced back Wednesday from losses this week, boosting the optimism of oil traders who often look to equities as a barometer of overall investor confidence.

On Tuesday, oil prices fell on fears that the Euro zone financial crisis could turn toxic for the global economic recovery.

New York's main contract, light sweet crude for delivery in July, dropped $1.46 to settle at $68.75 a barrel while in London, Brent crude for July shed $1.62 to settle at $69.55.

Prices slumped more than 2 percent on Monday as investors shunned riskier asset seeking the relative safety of the dollar and gold as concern spread about the health of European banks and tension between North and South Korea escalated.