By Ayenat Mersie
Brent crude futures
Prices had started to pull back earlier in Thursday's session, pressured by a stronger dollar, but recovered as the dollar retreated. <.DXY>
A stronger greenback makes it more expensive to buy dollar-denominated commodities like oil
"It wasn't much of a pull back," said Walter Zimmerman, chief technical analyst at United-ICAP. "People are still nervous about what's going to happen in Syria...nothing was solved overnight," he said.
Oil prices jumped on Wednesday after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned of military action in Syria, both of which raised concerns about possible supply disruptions.
Fundamental signals also supported prices. The Organization of the Petroleum Exporting Countries said the global oil stocks surplus was close to evaporating due to healthy demand and its own supply cuts.
The group is producing oil below its targets, meaning the world needs to use stocks to meet rising demand. OPEC said in its monthly report oil stocks in the developed world fell by 17.4 million barrels in February to 2.854 billion barrels, around 43 million barrels above the latest five-year average.
"We have seen an accelerated shrinkage of stocks in storage from unparalleled highs of about 400 million barrels to about 43 million above the five-year average," Barkindo said.
These bullish factors more than offset pressure from a U.S. government report showing crude oil inventories
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)