After two consecutive sessions of decline, oil prices inched up on Thursday as investors reevaluated the latest data on U.S. crude oil and gasoline inventories, prompting a return to buying mode.
Brent crude futures for May rose by 31 cents, or 0.4%, reaching $86.40 a barrel, while the more actively traded June contract increased by 32 cents, or 0.4%, to $85.73 at 0415 GMT. The May contract, set to expire on Thursday, added to the upward momentum.
U.S. West Texas Intermediate (WTI) crude futures for May delivery also saw gains, rising by 39 cents, or 0.50%, to $81.74 a barrel.
Both Brent and WTI benchmarks were poised to finish higher for a third consecutive month, with a roughly 4.5% increase from the previous month.
The uptick in oil prices comes after a session of pressure fueled by last week’s unexpected rise in U.S. crude oil and gasoline inventories. The Energy Information Administration data revealed that the increase was driven by a rise in crude imports and sluggish gasoline demand.
However, the crude stock increase was smaller than projected by the American Petroleum Institute, providing some relief to market sentiment.
Bjarne Schieldrop, chief commodities analyst at SEB Research, noted, “We expect U.S. inventories to rise less than normal in reflection of a global oil market in a slight deficit. This will likely hand support to the Brent crude oil price going forward.”
Investors will continue to monitor inventory levels and market dynamics closely as they assess the trajectory of oil prices in the coming sessions.
