Oil prices climbed up more than one per cent despite a report this afternoon showing US stockpiles grew unexpectedly for the first time in three weeks.
The US Energy Information Administration (EIA) said crude stocks rose by 118,000 barrels in the week ended 23 June, however, investors were encouraged as weekly production declined by 100,000 barrels per day (bpd) to 9.3m bpd.
Brent crude and West Texas Intermediate (WTI) futures rose to their highest level in more than a week - $47.30 per barrel and $44.84 per barrel, respectively - despite oil inventories rising well above market expectations of a decline of 2.5m barrels, said David Madden, market analyst at CMC Markets UK.
"The market jumped higher after the data was released, but the concerns about over-supply haven’t gone away," Madden said.
Fawad Razaqzada, an analyst at Forex, noted that oil prices were stable ahead of the report despite ongoing bearish sentiment: "Believe it or not, crude oil is actually up for the fifth consecutive day now."
Crude prices have been stuck in a wide range for over a year as speculators weigh the impact of the Organisation of the Petroleum Exporting Countries' (Opec) efforts to reduce global oil inventories against rising US shale supply, Razaqzada added.
In May, Opec and non-Opec nations agreed to extend a deal to cut production until March 2018 to combat the global supply glut.