Oil Update: Price rises after hitting 10-month low

Oil prices rose for the first time during the week after hitting their 10-month lows. The prices have been down owing to the increasing stockpiles and decreasing demand for oil in major economies. But the investors are looking for signs regarding depleting inventories in the Gulf markets owing to the OPEC led cuts.

Brent crude futures were 9 cents, or 0.2 percent higher, at $44.91 a barrel at 0018 GMT, after falling 2.6 percent in the previous session to their lowest since August last year.

U.S. crude futures were 12 cents, or 0.3 percent, higher at $42.65 a barrel. On Wednesday, they settled down at $42.53, after touching their lowest intraday level since August 2016.

The market was relatively unmoved by the Iranian Announcement hinting at the deepening of OPEC led cuts.

Oil prices after peaking in February – due to the OPEC led cuts – has dropped more than 20 percent in the last five months mitigating all the rises owing to the OPEC led cuts.

In United States, Crude inventories have fell over 2.5 million barrels in the week to June 16 surpassing analysts’ anticipations of 2.1 million.

In US, Gasoline stocks fell 578,000 barrels, compared with analysts' expectations for a seasonally unusual 443,000-barrel gain, which had been seen as bearish in the market.

United States Stocks of the motor fuel had also risen unexpectedly by 2.1 million barrels in the previous week, despite the start of the summer driving season.