Oil prices rise due to strong US fuel demand


Oil prices have climbed higher following a fall in US inventory and stronger demand, with growth largely restricted due to high supplies from OPEC countries. 

Brent crude futures gained 13 cents to reach $52.85 a barrel, while the US West Texas Intermediate (WTI) crude futures traded at $50.32 after climbing 15 cents, reported Reuters. 

Oil benchmarks received support from the falling US commercial crude oil stocks that fell by nearly 10% from late-March level to 483.4 million barrels.

Later, the American Petroleum Institute (API) is scheduled to publish its latest inventory data.

French bank BNP Paribas was quoted by the news agency as saying: "US gasoline demand climbed to last year's highs and US inventories, notably on the East Coast, declined."

"US gasoline demand climbed to last year's highs and US inventories, notably on the East Coast, declined."

However, global oil markets remained adequately supplied to prevent prices from improving further.

A survey conducted by Reuters found that oil production by the OPEC countries has increased in last month by 90,000bpd to 33 million bpd.

The growth in oil supply was primarily due to the improvement in production at Libya, an OPEC member exempted from the oil-curb deal.

OPEC members with other oil producing nations agreed to reduce output by 1.8 million bpd, later extending the deal to March 2018.