SINGAPORE – Oil prices hovered below 8-week highs yesterday, buoyed by hopes that a steeper-than-expected decline in US crude oil inventories will reduce global oversupply. Brent crude futures were down 16 cents, or 0.3 percent, at $50.81 a barrel, after rising about 1.5 per cent in the previous session. US West Texas Intermediate futures were down 13 cents, or 0.3 per cent, at $48.62 a barrel. US crude stocks fell sharply last week as refineries increased output and imports declined, while gasoline stocks decreased and distillate inventories dropped, the Energy Information Administration said on Wednesday. The 7.2 million barrel decline in crude inventories in the week ending July 21 was well above the 2.6 million barrel forecast. "This marks the fourth consecutive week that total hydrocarbon inventories have fallen during a time of year when they normally increase,” said PIRA Energy oil analyst Jenna Delaney.

Agencies.