Oil prices edged higher in Asian trade on Wednesday on hopes for stronger than expected U.S. crude demand, while doubts over the prospect of reaching an agreement next week on Iran’s nuclear program eased oversupply concerns.
Brent crude for August delivery had climbed 8 cents to $64.53 a barrel by 0317 GMT, after settling up $1.11, or 1.8 percent, in the previous session. U.S. crude for August delivery gained 12 cents to $61.13 a barrel, after rising 63 cents the day before.
“U.S. crude inventories have been at historic highs … but the thing is crude inventories may have peaked after oil demand picked up in June,” said Tony Nunan, oil risk manager at Tokyo’s Mitsubishi Corporation.