Oil prices surge with US demand increase, weaker dollar


(MENAFN) Oil prices surged on Wednesday with a demand increase in the US, the largest crude consumer in the world, and declined US dollar index, while a cease-fire agreement in the Middle East diminished supply woes between market players.

The global oil benchmark of brent crude increased 0.43 percent to UD72.49 per barrel at 9.58 a.m. local time (0658 GMT), a surge from the prior session's end of USD72.18.

The US benchmark West Texas Intermediate also rose by 0.43 percent to USD68.83 per barrel, compared to USD68.53 at the previous session's end.

Figures from the American petroleum Institute (API) revealed a higher-than-projected decrease in US crude oil shares which backed the upward movement in prices.

API released a decline of 5.93 million barrels in US commercial crude inventories in the previous week, opposing to market anticipations of a 250,000 barrel surge, raising optimism about increasing demand in the US.

The US Energy Information Administration is set to publish its formal inventory report throughout the day.

In addition, the declining of the US dollar against other currencies supported the surge in oil prices.

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