Oil prices traded sharply higher in European trade on Thursday after two days of losses. <\/p>\n
Benchmark Brent crude futures rallied 1.2 percent to $86.86 a barrel, while WTI crude futures were up 1 percent at $84.30.<\/p>\n
Oil prices fell earlier in Asian trading, giving up all of the gains seen following Hamas’ attack on Israel last weekend after industry data showed a hefty rise in U.S. crude stocks last week.<\/p>\n
The rebound came after OPEC+ leaders Saudi Arabia and Russia reaffirmed their close cooperation in the crude market with a public show of unity.<\/p>\n
Saudi Energy Minister Prince Abdulaziz bin Salman said in a Russian TV interview that producers will be “proactive” to bring stability to the oil market. <\/p>\n
Russia’s Deputy Prime Minister Alexander Novak, meanwhile, said the market balance was fragile.<\/p>\n
A weaker dollar and signs of increasing tensions in the Middle East also offered some support.<\/p>\n
The dollar held close to a two-week low following dovish Fed commentary and ahead of U.S. inflation data due later in the day.<\/p>\n
In the Middle East, Israeli military forces stepped up preparations for a ground offensive into the Gaza Strip to destroy the terror group as the death toll from Hamas’s massive onslaught passed 1,300. <\/p>\n
There are concerns that the conflict may spread across the region, endangering crude flows.<\/p>\n
Meanwhile, the American Petroleum Institute (API) said late Wednesday that U.S. crude oil stockpiles swelled by almost 13 million barrels, raising concerns about demand at the largest consumer in the world. <\/p>\n
However, stockpiles at the Cushing, Oklahoma, hub dropped back toward critically low levels. <\/p>\n
Official inventory data from the Energy Information Administration will be out later in the day. <\/p>\n