The price of oil rose above $107 per barrel Thursday after U.S. crude supplies fell in a possible sign of stronger demand.
Benchmark crude for September delivery was up 45 cents to $107.30 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 2 cents to close at $106.85 on Wednesday.
The latest supply reports showed a drop in U.S. crude inventories. The American Petroleum Institute said supplies dropped by nearly 1 million barrels to 365.3 million barrels for the week ending Aug. 9. The U.S. Energy Department said crude oil supplies fell by 2.8 million barrels, about double what analysts expected.
The dollar also fell against the yen and the euro, a move that supports oil prices. Crude, traded in dollars, becomes a more attractive investment for holders of other currencies when the dollar falls.
Brent crude, traded on the ICE Futures exchange in London, rose 41 cents to $109.23 a barrel.