2017.08.1602:52:00UTC+00Oil Prices Rise on Declining U.S. Inventories

Oil prices rallied due to a decline in U.S. crude stockpiles. However, the markets remained burdened by the general oversupply.

Brent crude futures stood at $51.02 per barrel, rising by 22 cents or 0.4 percent from their last settlement. Meanwhile, U.S. WTI crude futures stood at $47.70 per barrel, rising by 15 cents or 0.3 percent.

U.S. crude stockpiles declined by 9.2 million barrels in the week to August 11 to 469.2 million, according to the American Petroleum Institute. The latest figures compares with expectations of a 3.1 million barrels decline.

But gasoline stocks rose by 301, 000 barrels, against with analysts projections in a Reuters poll for a 1.1 million barrel drop. Official EIA data will be released later today. On a broader level, analysts said the brimming supplies were hindering the rally of prices.

On the demand side, analysts also project a gradual slowdown in consumption growth as demand for gasoline hits its peak levels due to improving fuel efficiency and the rise of electric vehicles, along with China's declining appetite for oil.