Oil extends gains, US crude rises above $40

Oil prices continued to rise on Thursday, as the US dollar fell against its peers, and after a drop in the US crude inventories.

The US Energy Administration reported yesterday a drop in commercial inventories by 1.6 million barrels last week, missing estimates of a drop by 2.5 million.

Additionally, the gasoline stockpiles fell by 7.7 million barrels during the same period.

While the US production fell 200,000 barrels during the past week, to a total of 10.7 million barrels per day.

The dollar index fell against a basket of currencies by 0.1% to 94.3 points as of 18:36 GMT, after it hit a high of 94.5 and a low of 94.2.

As of 18:35 GMT, WTI October futures at Nymex rose 0.8% to $40.2 a barrel, after hitting a high of $40.3 and a low of $39.1.

Brent November futures rose 0.3% to $41.9 a barrel, with a high of $42 and a low of $41.2.