Oil prices rise in the United States due to limited supply and growing fuel demand

Oil prices gained on Thursday, extending gains from the previous session, on the back of falling crude inventories and rising gasoline demand in the United States.

Brent oil futures for September rose 40 cents, or 0.4%, to $107.02 a barrel as of 00:10 GMT on Thursday, following Wednesday's $2.22 increase.

The price per barrel of U.S. West Texas Intermediate crude (WTI) increased by 52 cents, or 0.5%, to $97.78, following a gain of $2.28 in the previous session.

According to the Energy Information Administration, crude oil stockpiles in the United States declined by 4.5 million barrels last week, while gasoline consumption rose by 8.5% week over week.

As WTI traded at a substantial discount to Brent, global buyers found U.S. crude grades to be increasingly attractive.

On the demand side, the U.S. Federal Reserve increased its benchmark overnight interest rate by three-quarters of a percentage point, as expected, to combat inflation, while the dollar fell owing to expectations of a slower rate of rate rises.

The falling dollar also contributed to the rise in crude oil costs, as it makes oil purchased in dollars more cheap for international customers.

A senior G7 source revealed on Wednesday that the richest nations of the Group of Seven want to establish a price-capping mechanism on Russian oil shipments by December 5.

This week, executives indicated that the availability of fracking equipment and people, in addition to financial constraints, might hamper the increase of U.S. crude oil production.

Russia has restricted gas supply through Nord Stream 1, its principal gas pipeline to Europe, to 20% of capacity. According to experts, this may trigger a shift from gasoline to crude oil in the near future, driving up oil prices.