Oil prices have increased due to oversupply concerns being overshadowed by lower US crude inventories and optimistic global demand projections.
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Benchmark North Sea Brent crude oil rose 60 cents at $50.26 a barrel, while the US crude was up 20 cents and traded at $43.50 per barrel, Reuters reported.
Data released by the Energy Information Administration (EIA) on Wednesday highlighted a fall in US crude stocks last week, signalling demand strengthening.
Oil prices also received support based on traders’ note regarding a slide in the dollar value against other currencies this week.
A weaker dollar makes oil more affordable to other currency holders and backs commodity prices.
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By GlobalDataSEB in Oslo chief commodities analyst Bjarne Schieldrop told the news agency: "It matches very well with the US dollar curve."
Basra crude exports by Iraq in September are expected to increase, which will add to an already oversupplied market.
Oil demand in China, which is a major consumer of crude, looks bleak due to the slowdown in the country’s economy and devaluation of yuan.
