Oil prices rise as industry data points to healthy demand

Oil prices edged up on Wednesday, with Brent crude crossing the $68-mark to touch a four-week high as industry data pointed to stronger demand.

The international benchmark grade was last trading up 1.1 percent at $68.13 per barrel (bbl), while US West Texas Intermediate (WTI) crude futures rose nearly 1 percent to $64.17/bbl.

“The IEA (International Energy Agency) warned of a supply deficit on the oil market in the monthly report it published last Thursday,” Germany-based Commerzbank said in a note.

“The unexpected 2.7 million barrel decline in US crude oil stocks last week, as reported by the API (American Petroleum Institute), is likely to confirm market participants in this view,” it added.

The bank said it expects oil prices to continue strengthening over the next few days.

However, any indication that the oil markets are still sufficiently supplied, prices could come under pressure again, it said.