Oil prices rose on Thursday, extending gains from the previous session after an industry report showed a fall in US crude stockpiles last week adding to the positive comments by the US Federal Reserve head on the US economy.

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On Wednesday, US West Texas Intermediate crude rose 20 cents, or 0.4 percent, at $57.32 a barrel by 0111 GMT, after rising 0.6 percent.

Brent futures surged 17 cents, or 0.3 percent at $62.54 a barrel, having risen 0.5 percent in the previous session.

Federal Reserve chair Jerome Powell said on Wednesday that the US economy would see a "sustained expansion" with the full impact of recent interest rate cuts still to be felt, boosting hopes for increased demand for crude.

Powell's "rosy view of the US economy reinforces the view that the Fed sees the economy is on a positive track," said Stephen Innes, chief Asia market strategist at AxiTrader.

US crude inventories fell by 541,000 barrels in the week to November 8 to 440 million, showed the data from the American Petroleum Institute, an industry group. Meanwhile, the analysts' had expected an increase of 1.6 million barrels.

Concerns have eased over a US recession, although an economic rebound is also not expected any time soon, according to a Reuters poll of economists released on Thursday.

The poll also showed that economists believe the US-China trade war is unlikely to see a permanent truce over the coming year, which may further affect the global growth and demand for oil, putting a cap on prices.

On the contrary, OPEC secretary-general Mohammad Barkindo believes that the US and China would reach a trade deal and that the global economic fundamentals will remain strong.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have been restraining production since January to try to support oil prices.

First Published:Nov 14, 2019 7:48 AM IST