Oil prices extended gains on Thursday, underpinned by robust demand in the world's top consumer US while demand is expected to rebound in China as COVID-19 restrictions across major cities are relaxed.

Brent crude futures for August rose 50 cents, or 0.4 percent, to $124.08 a barrel by 0153 GMT, while U.S. West Texas Intermediate crude for July was at $122.49 a barrel. Both benchmarks closed Wednesday at their highest since March 8, matching levels seen in 2008.

Even as the gas prices in the US are at record highs, China's reopening will continue to boost demand - nearly 1 million barrels per day of a demand recovery has been seen after the lockdown restrictions were removed in the country.

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In addition, most banks and brokerages are expecting prices will gain further from hereon for this quarter and the next with Goldman Sachs and Trafigura pegging the price at around $ 140-150 per barrel.

So expect the net long positions to continue to be built on the higher side for the crude prices.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

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(with input from Reuters)