Oil prices edged up slightly on Thursday, recovering from recent two-week lows following data showing a drop in U.S. crude and fuel inventories. Brent crude rose by 23 cents (0.31%) to settle at $74.45 a barrel, while U.S. West Texas Intermediate (WTI) ended down 28 cents (0.4%) at $70.67.
U.S. crude inventories fell by 2.2 million barrels last week, countering expectations for a rise, alongside declines in gasoline and distillate inventories. This was seen as a sign of improving operational efficiencies, according to Tim Snyder of Matador Economics.
Fears of a potential Israeli retaliatory strike on Iran kept prices steady, though the exact measures remain uncertain. Meanwhile, a strong U.S. dollar, reaching an 11-week high, tempered price gains as it dampened demand for oil from buyers using other currencies. Investors are also awaiting further economic stimulus details from China.