Oil Update – Prices rise after US shows strong demand

Prices recovered on Thursday after a reportedly strong demand from the US markets. Experts anticipate that, the price rise will be short-lived as the oversupply worries from US continue to haunt the prices.

Brent crude futures were trading up 34 cents, or 0.7 percent, at $48.13 per barrel by 0513 GMT.

U.S. West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.7 percent, at $45.45 per barrel.

The rising demand from the US markets helped oil prices inch upward. As the number form API (American Petroleum Institute) on Wednesday showed that the US Crude Inventories fell by 5.8 million in the week ending June 30.

Prices tumbled about 4 percent on Wednesday on rising exports by the Organization of the Petroleum Exporting Countries (OPEC), despite its pledge to hold back production between January this year and March 2018 to prop up prices.