NEW YORK, June 8 (Xinhua) -- Oil prices extended gains on Wednesday as traders parsed U.S. fuel inventory data.

       The West Texas Intermediate for July delivery added 2.7 U.S. dollars, or nearly 2.3 percent, to settle at 122.11 dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery increased 3.01 dollars, or 2.5 percent, to close at 123.58 dollars a barrel on the London ICE Futures Exchange.

       The upswing came after data showed U.S. gasoline demand rose despite record pump prices.

       The U.S. Energy Information Administration (EIA) reported Wednesday that the nation's crude oil inventories increased by 2 million barrels in the week ending June 3, while total motor gasoline inventories decreased by 800,000 barrels.

       Analysts polled by S&P Global Commodity Insights had expected the EIA publications to show a fall of 2.9 million barrels in crude inventories and a climb of 2 million barrels in gasoline stocks.

       Meanwhile, oil prices continued to garner support from prospect of higher demand in China.