Oil prices edged higher on Thursday, marking the third consecutive session of gains. This rebound comes after government data revealed a significant drawdown in U.S. crude stockpiles, which had previously touched multi-month lows earlier this week.
Brent crude futures rose 23 cents, or 0.3 percent, to $78.56 per barrel as of 00:17 GMT, while U.S. West Texas Intermediate (WTI) crude gained 29 cents, or 0.4 percent, to $75.52 per barrel.
The recovery in oil prices comes after Brent tumbled to its weakest level since early January and WTI dipped to its lowest since February, driven by concerns over a potential U.S. recession and a broader selloff in global stock markets.
Read more: Oil prices slide on bearish inventory data, persistent global economic slowdown fears
According to the government data, U.S. crude inventories fell for the sixth consecutive week, declining by 3.7 million barrels to 429.3 million barrels last week, surpassing the expected 700,000-barrel draw from a Reuters poll.
Investors also continued to monitor the supply situation, as data from the U.S. Energy Information Administration showed that production increased by 100,000 barrels per day (bpd) to a record 13.4 million bpd in the week ending August 2.
However, the potential for supply disruptions in the Middle East has been a concern for the markets. While no direct supply impact has been reported, attacks on ships in the Red Sea have forced tankers to take longer routes, meaning more oil remains on the water for a longer duration.
Furthermore, Libya’s National Oil Corporation has declared force majeure in its Sharara oilfield, effective from Tuesday, stating that the company had gradually reduced the field’s production due to ongoing protests.
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