The global oil prices today witnessed an uptick owing to a weaker US dollar and also fueled by robust demand outlook in the US after inventories fell more than expected.
Brent crude futures gained 34 cents or 0.5%, to touch $71.12 a barrel, their highest level since March 3.
US West Texas Intermediate crude (WTI) gained 42 cents or 0.6% to inch up to $67.58.
The US federal data revealed a higher-than-expected drawdown last week in distillate inventories comprising diesel and heating oil, which fell by 2.8 million barrels.
“US oil demand outlook remains healthy despite lower air travel passenger volumes,” JPMorgan analysts said in a note.
Global oil demand averaged 101.8 million barrels per day (bpd), an annual increase of 1.5 million bpd.
US crude inventories rose 1.7 million barrels.
The weakness of the dollar appeared to provide some support for dollar-denominated oil prices.
Oil investors remain hopeful of the prospect of the Federal Reserve easing interest rates by 50 basis points by year’s end.
Global risk premiums rose after Israel launched a new ground operation on Wednesday in Gaza after a ceasefire of nearly two months.
Bearish near-term market drivers include the upcoming production rise among OPEC+ members and an expected muted US S&P Global Services PMI flash reading for March.