Oil Prices Hold Steady After Wednesday's Rally

Oil prices held steady on Thursday after a surge in the previous session on data showing a larger-than-expected draw in U.S. gasoline stocks.

Benchmark Brent crude futures edged up by 0.1 percent to $71.04 a barrel in European trade. WTI crude futures were little changed at $67.72 after the biggest gain in two weeks.

Oil prices were benefiting from the risk-on sentiment across markets after U.S. consumer inflation came in lower than forecast by economists, bolstering the case for more Federal Reserve interest-rate cuts this year.

Markets also weighed tight U.S. fuel supplies against global economic risks. Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. increased 1.4 million barrels last week, while analysts had expected a 2.1-million-barrels build.

Gasoline inventories tumbled by 5.7 million barrels last week and distillate stocks also dropped more than anticipated, raising expectations for a seasonal demand increase in spring.

OPEC's latest monthly oil market report left both demand and supply estimates unchanged for 2025 and 2026 despite concerns over a potential recession in the United States.

On the other hand, the International Energy Agency has lowered its demand-growth estimates for the fourth quarter of last year and first quarter of this year and warned of bigger-than-anticipated supply surplus if OPEC+ raises output beyond April.