Oil Update: Prices rise for sixth session

Oil Markets continued its positive momentum for the sixth session on Thursday. After reports of Oil Stocks in decline in the US, the markets have started their rebound from their 10 month low levels.

The oil prices have suffered heavily because of oil glut due to oversupply from US oil suppliers. Furthermore, lack of demand from developing countries has also taken their toll on oil prices.

U.S. West Texas Intermediate (WTI) crude rose 7 cents, or 0.2 percent, to $44.81 per barrel by 0003 GMT whilst the benchmark Brent futures gained 8 cents, or 0.2 percent, to $47.39 a barrel.

WTI climbed to $44.90 a barrel, matching Wednesday's peak price which was highest since June 19.

The U.S. Energy Information Administration (EIA) said crude stocks rose 118,000 barrels last week, while weekly production declined 100,000 barrels per day (bpd) to 9.3 million bpd. That was the biggest decline in weekly output since July 2016.

Aanlysts expect the price for oil will remain within the $40-$55 a barrel for the next few quarters as a higher US production slows a rebalancing of the market.

OPEC and the other producers, trying to reduce a crude glut, agreed in May to extend the supply cut through March 2018. But OPEC has exempted Nigeria and Libya from cutting output.

OPEC delegates have said they will not rush to cut crude output further or end the exemptions, although a meeting in Russia next month is likely to consider further steps to support the market.