Oil prices have rise slightly after larger than expected draw down of US crude and gasoline inventory.

Benchmark Brent crude oil 80 cents a barrel settling at $54.18, while the US crude prices went up 30 cents to $49.09, Reuters reported.

Aaccording to Wednesday’s data from Energy Information Administration data, crude inventory fell by 4.2 million barrels during the week ending 24 July, which is several times more than analysts’ expectations.

"US stocks data were supportive but the dollar strength is putting a brake on the market."

Dollar value also rose with expectations that the Federal Reserve could raise the interest rates by September.

Commerzbank senior oil analyst Carsten Fritsch told the news agency: "US stocks data were supportive but the dollar strength is putting a brake on the market."

Due to pumping of more oil by key Middle East producers, prices of the fuel have more than halved in 2014.

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This led to an oversupply and filling storage tanks globally.

During the second quarter, the Organization of the Petroleum Exporting Countries (OPEC) pumped around three million barrels per day.

Several oil companies have cut drilling due to lower oil prices and this balanced some markets, especially in the US.

Anticipating a global oversupply, Dutch Bank ABN AMRO has cut its crude oil price forecasts for 2016.