NEW YORK, May 28 (Xinhua) -- Oil prices hit 65 U.S. dollars on Thursday after the U.S. government reported a sharp decline in crude inventories.

    Light, sweet crude for July delivery rose 1.63 dollars, or 2.6 percent, to settle at 65.08 dollars a barrel on the New York Mercantile Exchange, the highest settlement since early November.

    According to the U.S. Energy Department's Energy Information Administration (EIA), crude oil stockpiles declined 5.41 million barrels to 363.1 million for the week ended May 22, while gasoline inventories dropped 537,000 barrels to 203.4 million, the lowest since the week ended Dec. 5.

    Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) decided Thursday to maintain their production quotas, betting a strengthening economy and signs of rising demand would support prices.

    In London, Brent crude rose 1.89 dollars, or 3.02 percent, to settle at 64.39 dollars a barrel on the ICE Futures Exchange.