Oil continue to strengthen helped by inventories and lower USD

Oil prices continue to strengthened on weaker US dollar and a reduction in US stocks.

The weak US dollar has been supporting raw materials, as denominated in the US currency, oil futures become cheaper for investors using other currencies.

In addition, quotes are supported by a strike in the Norwegian oil industry, threatening production in the North Sea.

US Energy Information Administration reported that crude oil inventories tumbled by 6.2 million barrels last week to 504.6 million, which was a surprise to market analysts that forecasted an increase of 3.35 million barrels.

The report also showed that gasoline stocks fell by 3.204 million barrels, compared with expectations of a decline by 0.567 million barrels, while distillate stocks rose by 2.238 million barrels.

Traders continue to assess the likelihood that major oil-producing countries will be able to agree on the level of production in order to stabilize the market.

OPEC members will discuss potential limitation of production in the course of an informal meeting on the sidelines of the International Energy Conference in Algiers on 26-28 September.

The cost of the November futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 46.52 dollars per barrel on the New York Mercantile Exchange.

November futures price for North Sea petroleum mix of Brent crude rose to 47.83 dollars a barrel on the London Stock Exchange ICE Futures Europe.