Oil prices have increased after a report highlighted a fall in US crude oil inventories and a weaker dollar.

Brent crude oil futures were 70 cents above their last settlement and traded at $49.50 per barrel, while the US West Texas Intermediate (WTI) crude was up 65 cents at $48.08 per barrel, Reuters reported.

A weak US dollar makes oil cheap for holders of other currencies.

Data released by the American Petroleum Institute (API) highlighted a fall in US crude stockpiles by 6.7 million barrels last week.

"The data revealed that gasoline stocks witnessed a 3.6 million barrel fall."

Furthermore, the data revealed that gasoline stocks witnessed a 3.6 million barrel fall.

A decline in Asian crude demand may be due to an economic slowdown as well as more permanent structural changes, market participants said.

PVM told the news agency: "Yesterday’s optimism both in the equities and oil markets could evaporate quickly as the negative impact of Brexit will stay with us for the foreseeable future."

Other data revealed that industrial output in Europe’s largest economy Germany declined unexpectedly last month for its monthly drop since August 2014.

It is expected that oil export terminals in Libya, which have been shut since 2014, and may reopen soon and restore crude capacity of 600,000bpd.