Oil prices were up on Wednesday with the forecast of a large US crude inventory withdrawal that was viewed by investors as crude demand picking up in the US.
International benchmark Brent crude was trading at $41.60 per barrel at 0639 GMT for a 1.1% increase after closing Tuesday at $41.15 a barrel.
American benchmark West Texas Intermediate (WTI) was at $39.64 a barrel at the same time for a 0.9% gain after ending the previous session at $39.27 per barrel.
Crude oil inventories in the US are expected to decline by around 8.1 million barrels for the week ending June 26, according to the American Petroleum Institute's (API) estimate on Tuesday.
The Energy Information Administration (EIA) will release official data on the weekly change of US crude oil stocks and production later on Wednesday.
If crude stocks decrease in line with expectations, this would signal that crude demand is picking up in the US, the world's largest oil consumer, and as a result, push prices higher.
On the demand side, the risks of a second wave of the novel coronavirus (COVID-19) continues to keep global oil demand low and crude prices under pressure.
Libya's preparations to start oil exports also pose a risk of a rise in the glut of supply on the global oil market.
However, on the demand side, if major global economies restart economic activities, then overall demand would increase to support crude prices in the third quarter of 2020.
By Ovunc Kutlu