Brent crude oil prices have risen due to strong demand, combined with a decline in inventories in the US.

Brent futures increased 99 cents at $64.69 a barrel, while front month US crude futures rose 83 cents at $60.80 per barrel, Reuters reported.

The American Petroleum Institute data revealed that despite refineries reducing output, crude stocks in the US fell last week, while gasoline inventories dropped.

"As crude stocks erode, prices will gradually strengthen."

Last week, crude stocks in the country were predicted to fall by 1.7 million barrels, with gasoline stocks dropping 300,000 barrels, and larger decline of stocks. Prices edged-up as the US crude production fell due to the high cost of producing shale gas.

Data published by the US Energy Information Administration (EIA) in June highlighted that petroleum oversupply worldwide increased to 2.6 million barrels per day (bpd) since the end of the second quarter of 2014.

According to analysts, prices are expected to increase somewhat during the second half of 2015 as demand is strong with stocks coming down.

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US-based Pira Energy told the news agency: "Fundamentals are at an inflection point and will improve from here with high refinery runs this summer and sequentially declining US crude production. As crude stocks erode, prices will gradually strengthen."

US prices are outperforming international Brent contracts owing to factors such as strong US fuel demand, a tropical storm warning, and recent Canadian wildfires that led to the shutdown of oil production.