Oil prices were little changed on Thursday, as a higher-than-expected fuel inventory drawdown in the US and renewed tensions in the Middle East countered strength in the dollar, reports Reuters.
Brent crude futures inched up 8 cents, or 0.11 per cent, to $70.86 a barrel by 1251 GMT, while US West Texas Intermediate crude (WTI) contract for April rose 4 cents to $67.20.
The more actively traded WTI May contract rose 5 cents, or 0.07 per cent, to $66.96.
US government data showed a higher-than-expected drawdown last week in distillate inventories, including diesel and heating oil, which fell by 2.8 million barrels, outstripping a drop of 300,000 barrels expected in a Reuters poll.
"US oil demand outlook remains healthy despite lower air travel passenger volumes," JPMorgan analysts said in a note, adding that reduced US travel activity did not signal broader weakness in the demand outlook.
US crude inventories, rose 1.7 million barrels, however, exceeding expectations for an increase of 512,000 barrels in an earlier Reuters poll.
"Available oil inventory data suggests a moderately undersupplied oil market in early 2025. We retain our view that the oil market will be closely balanced this year, in contrast to market expectations of larger oil surpluses," said UBS analyst Giovanni Staunovo.
Putting a lid on crude prices was the dollar, which inched up after the Federal Reserve indicated it was in no rush to cut rates further this year due to uncertainties around US tariffs.
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