Oil prices are on the rise after the morning drop in Asian trade, as concerns about the tightness of global supply offset the increase in gasoline stocks.
Brent rose 63 cents, or 0.6 percent, to $ 113.08 a barrel, while West Texas Intermediate rose 49 cents, or 0.5 percent, to $ 110.27 a barrel.
“Crude is driven higher after inventories, as refineries increase their yields amid traditionally high refining margins,” said ANZ analysts.
Crude stockpiles fell 2.8 million barrels a week through June 24, well above estimates for a 569,000-barrel drop, according to the US Energy Information Administration, despite rising gasoline inventories.
Further supply problems are supported by prices, according to ANZ analysts, as shipments from Libya to two major eastern ports were suspended, while production in Ecuador was reduced due to ongoing protests.
However, worries about a slowdown in economic growth continued to curb rising prices.
Also, the strong dollar does not favor the rise in oil prices, as it makes oil more expensive for buyers who use other currencies.