Brent crude traded above $110 a barrel today on expectations of improved demand from the US, as a sharp decline in the country’s petrol stocks added to recent data indicating a stronger economy.
Brent increased 23 cents to reach $110.04 a barrel by 0759 GMT, after losing 21 cents on Wednesday, while US crude oil gained ten cents to $102.82 a barrel, reported Reuters.
The brighter demand outlook is supporting prices, which are already high due to supply disruption worries from Libya and the rift between Russia and Ukraine.
Brent has recovered approximately 3% from a low of $106.85 on 1 May 2014, while the US has gained more than 4% in the same period.
Data from the American Petroleum Institute revealed that crude stocks in Cushing, Oklahoma, fell by 1.5 million barrels.
Overall inventories increased by 3.5 million barrels to 383.9 million in the week ending 23 May 2014, while gasoline stocks declined by 1.4 million barrels.
Investors are now awaiting data from the US Energy Information Administration (EIA), which is scheduled for release later today.
Investors are also watching the situation in Ukraine, where several pro-Russian rebels seized an airport in Donetsk.