Oil prices rise on early signs of slowing US glut build

Oil prices rose on Thursday, building on big gains in the previous session on signs the US crude glut is not growing as fast as expected and that gasoline demand battered by Covid-19 restrictions is starting to pick up.

West Texas Intermediate (WTI) crude futures climbed to a high of $16.25 a barrel and were up 7.2 per cent, or $1.08, at $16.14 at 0147 GMT. The US benchmark surged 22 per cent on Wednesday.

Brent crude rose 3.9 per cent, or 88 cents, to $23.42 a barrel in light trading, with the June contract expiring on Thursday. The contract hit a high of $23.65 in early trading, having posted a 10 per cent gain on Wednesday.