Oil prices edged higher in Asian trade today, as improved transportation links unlocked a glut of US supplies, analysts said.
New York’s main contract, West Texas Intermediate (WTI) for delivery in August, rose 44 cents to $108.49 a barrel, while Brent North Sea crude for September delivery was up 36 cents at $108.43 in mid-morning trade.
WTI had reached as high as $109.32 in intra-day New York trade on Friday, topping the price of Brent for the first time since August 16, 2010.
The contract “has traded above Brent as the glut in Cushing, Oklahoma, the delivery point for WTI, has been eased by pipeline and rail shipments,” Lee Chen Hoay, investment analyst at Phillip Futures in Singapore, said.
Oil prices have been supported by a nearly 27-million barrel decline in US stockpiles in the past three weeks thanks to the US driving season when Americans take to the roads for their holidays.
“We are in the driving season and expect to see prices for WTI sustained at these higher levels,” said Kelly Teoh, market strategist at IG Markets in Singapore.