On Thursday, Brent crude oil prices reached their highest level since April, staying above $87, due to data showing a drop in U.S. inventories the previous day.
As of 19:22 GMT, Brent crude futures rose by 21 cents, or 0.2%, to $87.55 per barrel. U.S. West Texas Intermediate (WTI) crude futures increased by 18 cents to $84.06 per barrel, with trading subdued due to the U.S. Independence Day holiday.
In the prior trading session, Brent crude rose 1.3% to close at $87.34, marking the highest closing price since April 30. Meanwhile, WTI closed at $83.88, reaching an 11-week high.
These gains were due to a larger-than-expected decline in U.S. crude inventories. The U.S. Energy Information Administration (EIA) reported a reduction of 12.2 million barrels, while analysts surveyed by Reuters had anticipated a decrease of 680,000 barrels.
RBN Energy analyst Martin King noted that traders are also watching the Gaza conflict and elections in France and the UK.
"The market is quiet, with people focusing on the physical market and geopolitical situations," King said.
Earlier, oil prices had dropped by as much as 83 cents, but PVM analyst Tamas Varga indicated that the weakening dollar and optimistic outlook for U.S. fuel demand following the EIA data mean this decline is not expected to last.
However, Germany's industrial orders unexpectedly fell in May, exacerbating signs that the recovery of Europe’s largest economy remains challenging.
Data released on Wednesday from the U.S. showed an increase in initial jobless claims last week, along with a rise in continuing unemployment, further heightening demand concerns.
