Oil rises from 3-week low as fears of tight supplies persist

Oil futures rose on Thursday from a three-week low touched in the previous session after major consuming countries said they would release large amounts of oil reserves, while fears of tight supply still dominate market expectations.

Brent contracts rose $1.48, or 1.5 percent, to $102.55 a barrel.

And US crude contracts rose $1.26, or 1.3 percent, to $97.49 a barrel.

The two benchmarks lost more than five percent in the previous session, and recorded their lowest level at the close since March 16.

The International Energy Agency said its member states would release 120 million barrels of strategic reserves to try to calm sharp price increases. According to two informed sources, the figure will include 60 million barrels of strategic reserves in the United States. This pledge forms part of a previous US announcement of the withdrawal of 180 million barrels from the reserves.

But analysts and traders said that even with the release of oil stocks, supplies remain tight.