Oil prices climb on improved crude demand

Global oil prices rose on Monday, supported by falling US supplies amid improved demand for crude in the world's biggest economy, according to analysts. Brent North Sea crude for delivery in September advanced 25 cents to $108.32 in London midday deals. New York's main contract, West Texas Intermediate (WTI) for August, gained 55 cents to $108.60 a barrel. WTI had reached as high as $109.32 in intra-day New York trade on Friday, topping the price of Brent for the first time since August 16, 2010. Oil prices have been supported by a nearly 27-million barrel decline in US stockpiles in the past three weeks thanks to the US driving season when Americans take to the roads for their holidays. "We are in the driving season and expect to see prices for WTI sustained at these higher levels," said Kelly Teoh, market strategist at IG Markets in Singapore.