Brent nears $76.50 despite stronger dollar

Oil drilling rigs

Oil prices rose on Thursday, extending previous session gains, amid report of decline in US crude stocks following the impact of the two hurricanes on the US Gulf of Mexico.

The international benchmark Brent crude was trading up 0.3% at $76.39 per barrel, at 9.00 am Makkah time.

WTI crude rose 0.3% to $72.43 per barrel.

Data from the Energy Information Administration (EIA) showed US crude stocks fell by 3.5 million barrels in the week to Sept. 17.

"Oil fundamentals remain constructive, particularly in the US," Reuters reported, citing a note from ING.

Meanwhile, ANZ analysts said that supply shortage of gas could encourage power utilities to shift from gas to oil if winter turns out to be colder this year, the news agency reported.

The rise in oil prices came even as the US dollar hit a one-month high after the Federal Reserve signalled rate hikes could come next year.