Oil prices continued to rise in early Asian trade on Thursday after rising more than 3% in the previous session on record US crude exports and a weaker dollar.
Brent crude futures rose 25 cents, or 0.3 per cent, to $95.94 a barrel. US West Texas Intermediate (WTI) crude rose 19 cents, or 0.2 per cent, to $88.10.
US crude oil stocks rose 2.6 million barrels last week, with crude exports rising to 5.1 million barrels per day, the highest ever, according to weekly government data on Wednesday.
Traders attributed the rise in exports to a wider WTI-Brent spread, which was trading higher than $8 a barrel, coming into Wednesday’s trade.
The dollar’s weakness also added support, as the greenback’s late strength has been a notable factor constraining oil market gains. A weaker dollar makes greenback-valued crude less expensive for other currency holders.
A Bloomberg news report also raised prices suggesting that the United States and the European Union are likely to settle for more loose polish caps at a higher price than once imagined, leaving only seven group (G7) nations and Australia is committed to complying with this, the report said, citing people familiar with the matter.
Europe is expected to ban oil imports from Russia next month and ban Russian shippers from the global shipping insurance industry.