Oil prices rose on Thursday as crude inventories in the US fell on higher demand as the summer driving season ramped up while concerns over Middle East supply risks eased.
Brent crude futures improved by 5 cents or 0.07 per cent to trade at $67.73 per barrel and the US West Texas Intermediate (WTI) crude futures gained 32 cents or 0.49 per cent to settle at $65.24 a barrel.
The US driving season had started slowly but was now stoking demand as seen with crude oil inventories tightening.
US crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose, the Energy Information Administration (EIA) said on Wednesday. Crude inventories fell by 5.8 million barrels.
Also supporting oil prices, the Dollar index , which measures the greenback against a basket of currencies, sank to a three-year low as a report that President Donald Trump was planning to choose the next Federal Reserve chief early fuelled fresh bets on US rate cuts.
A weaker Dollar makes oil less expensive for holders of other currencies, increasing demand.
The US Federal Reserve Chairman, Mr Jerome Powell had testified on Wednesday before the Senate Banking Committee.
However, President Trump who was at the NATO summit in The Hague insulted the central banker who he had nominated for the job nearly eight years ago.
“I think he’s terrible,” President Trump said when asked during a news conference about his intentions for the next US central bank leader.
He also called Mr Powell a “very average mentally person,” adding he has “a low IQ for what he does” and is “a very political guy.”
Market analysts note that the US President is considering naming the successor sooner than expected in an attempt to influence interest rate policy.
Signs of easing Middle East supply risks offset some gains with Israel’s Prime Minister Benjamin Netanyahu saying the outcome of its war with Iran presented opportunities for peace that his country must not waste.
President Trump hailed the swift end to war between Iran and Israel and said the US would likely seek a commitment from Iran to end its nuclear ambitions at talks with officials from the oil producing country next week.