Oil prices rebounded on Thursday from two days of losses, reversing course after a report suggested crude stockpiles at the U.S. storage hub at Cushing, Oklahoma fell in the latest week.
U.S. stockpiles have been in the spotlight because they rose unexpectedly last week, stoking fears that the market is becoming oversupplied. Thursday's data suggests last week's increase might have been an anomaly, traders said.
Crude inventories at Cushing dropped 1.1 million barrels since Friday, July 27, traders said, citing a report issued by energy information provider Genscape. In the previous week, total U.S. inventories rose 3.8 million barrels, while supplies at Cushing fell 1.3 million barrels.
"There's an expectation that the build from this week will be gone next week," said Phil Flynn, an analyst at Price Futures Group in Chicago. Additionally, he said, U.S. monthly figures for production fell in May, suggesting that output may be curbed later in the year, he said.
Brent crude futures were last up $1.23, or 1.7 percent, at $73.62 a barrel by 2:22 p.m. ET, after dropping 2.5 percent on Wednesday. U.S. crude futures rose $1.35, or 2 percent, to $68.93, having declined 1.6 percent in the previous session.