Oil prices increased on Wednesday following a decline in crude stockpiles at Cushing, Oklahoma in the US.
Brent crude rose 58 cents to $67.44 a barrel, while US crude also gained 64 cents to reach $61.39, Reuters reported.
Data from the American Petroleum Institute Crude highlighted that inventories in the US dipped by two million barrels in the week to 8th May, against expectations of analysts for a 0.386 million barrels rise.
“Any increases in prices would see an automatic response from the market, especially the lower cost producers such as those in the Permian Basin.”
Oil prices received a boost, reaching a five month high as US stockpiles dipped for the second straight week.
Prices have risen as the US Government has forecasted that the crude output growth for 2015 is to fall to 530,000bpd from the existing 550,000bpd, while during 2016 the output could reach 20,000bpd from the previous forecast of 80,000bpd.
Global oil demand for 2015 is expected to reach 1.18 million barrels per day according to the Organization of the Petroleum Exporting Countries (OEC), against 1.17 million that was previously estimated.
The rise in oil price is also triggered by a modest drop in the US dollar over other major currencies.
The news agency quoted BMI Research senior oil analyst Shunling Yap as saying: “Any increases in prices would see an automatic response from the market, especially the lower cost producers such as those in the Permian Basin.”