Oil prices have risen following a further fall in the US crude inventory levels.
Brent crude futures for September increased 43 cents to $50.42 a barrel, while the US crude for September delivery edged up 36 cents to $46.10 a barrel, Reuters reported.
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Dollar prices strengthened following support extended by a voting member of the US Federal Reserve’s policy-setting committee for an increase in interest rate in September.
A stronger dollar could make commodities including oil dearer for buyers in other currencies, while it could make non-US investors profitable who sell it.
During the quarter, oil prices have already seen a dip of 21% with increasing glut and slowing demand in China, which is one of the biggest importers of crude.
The possibility of Iranian oil reaching to the already oversupplied market following its deal with the West over its nuclear programme, could hurt the prices further.
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By GlobalDataCommerzbank strategist Eugen Weinberg told the news agency: "All the negative news we’ve had in the last few weeks and months, starting with the nuclear deal with Iran, through to economic weakness in China and the strength of the dollar have all added up and, at least in our view, this (sell-off) was overdone."
According to American Petroleum Institute (API), crude inventories in the US declined by 2.4 million barrels last week to 459.7 million, as against analysts’ expectations for a 1.5 million barrels decrease.
Investors are keenly awaiting the data to be published by the US Energy Information Administration (EIA).
