06.07.202309:59:00UTC+00Oil Prices Gain After US Inventory Drop

Oil prices traded higher on Thursday after industry data showed a decline in the crude oil inventories in the United States.

Overall gains, however, were limited by a stronger dollar, expectations of more U.S. rate hikes and lingering concerns about China's economic recovery.

Benchmark Brent crude futures rose half a percent to $77 a barrel, while WTI crude futures were up 0.6 percent at $72.22.

Data released Wednesday by the industry group American Petroleum Institute showed that U.S. crude oil inventories fell by 4.4 million barrels in the week to June 30, far more than expectations for a draw of 1.8 million barrels.

Official numbers from the Energy Information Administration are due later in the session.

Meanwhile, the dollar has drawn some strength from the hawkish Fed meeting minutes released on Wednesday showing that Fed officials expect more rate hikes, but at a slower pace.

As U.S. recession worries ease, investors await the all-important U.S. jobs report due on Friday for additional clues on the economic and rate outlook.