Oil rises as supply concerns outweigh US fuel stocks build

Oil prices edged higher on Thursday as concerns about global supply tightness outweighed a build in US gasoline and distillate inventories.

Brent crude futures for September_ the more actively traded contract rose 63 cents_ or 0.6 per cent_ to $113.08 a barrel at 0250 GMT. The less liquidly traded August contract_ which expires Thursday_ was at $116.08_ down 18 cents_ or 0.2 per cent.

US West Texas Intermediate (WTI) crude futures climbed 0.5 per cent or 49 cents to $110.27.

Crude inventories fell by about 2.8 million barrels in the week to June 24_ far exceeding analysts' expectations for a 569_000 barrel drop_ even as US gasoline and distillate stockpiles climbed_ US Energy Information Administration data showed.

Fuel stocks increased as refiners ramped up activity_ operating at 95 per cent of capacity.
 
But further disruptions to supply accelerated the price hikes_ amid the suspension of Libyan shipments from two key eastern ports_ while Ecuador extracted less oil due to ongoing protests.

State-run Petroecuador said_ exports of Ecuador's flagship Oriente crude remain suspended under a force majeure declaration as the spread of anti-government protests hurts oil output.
 
A stronger US dollar also capped price gains as it makes oil more expensive for buyers using other currencies.

Meanwhile_ the OPEC+ group_ including Russia_ began two days of meetings on Wednesday_ though there was little prospect of pumping more oil_ sources said.