Oil is rising, supported by a less-than-expected increase in US inventories

Oil prices rose in early Asian trade on Thursday after a less-than-expected build in US crude inventories, while a weaker dollar made oil less affordable for buyers of other currencies.

By 0119 GMT, Brent crude futures rose 12 cents to $86.24 a barrel, while West Texas Intermediate crude futures rose 30 cents to $80.45 a barrel.

The US Energy Information Administration said that crude stocks increased by 533 thousand barrels to 448.5 million barrels in the week ending January 20. This is far less than expectations of an increase of one million barrels.

But despite the smaller-than-expected increase, crude inventories reached the highest level since June 2021.

Prices were also supported by a decline in the US dollar, which fell against the euro on Wednesday.

One of the factors preventing the rise in oil prices is fears of a global economic slowdown, which will undermine the demand for fuel.