Oil prices increased on Thursday, supported by a demand surge in the US, the world's biggest consumer, and a weakening US dollar index.
The international benchmark Brent crude rose by 0.2% to $74.85 per barrel at 10.31 a.m. local time (0731GMT), up from $74.69 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) increased by 0.3% to $71.76 per barrel, compared to its prior session close of $71.55.
Uncertainty surrounding the actions of the incoming US administration and the roadmap the Federal Reserve (Fed) will follow this year continues to influence the oil markets. The concern of recession and inflation worldwide also affects asset prices.
Expectations of increased fossil energy investments in the US, driven by the policies of US President-elect Donald Trump set to take effect on Jan. 20, are supporting price increases.
The American Petroleum Institute (API) reported a drawdown in US commercial crude oil inventories for the week ending Dec. 27.
API data indicated a 1.4-million-barrel decline, though it remained below market expectations of a 3-million-barrel fall. The drop in stocks suggests strengthening demand in the US.
The US Energy Information Administration will release official inventory data later on Thursday.
The weakening of the US dollar against other currencies aided the rise in oil prices. The weak dollar is expected to enhance demand by making oil cheaper for those who use foreign currencies.
The US dollar index, which measures the US dollar's value against other currencies, fell 0.15% to 108.135.
Expectations of economic growth in China, the world's largest crude importer, are driving demand growth projections and influencing upward price movement.
China's President Xi Jinping on Tuesday called for national "strategic resolve" to weather "dangerous storms" as the world's second-largest economy was on its path to grow at around 5%.
In a separate New Year message, Xi said: "The economy has rebounded and is on an upward trajectory, with the national GDP expected to pass the mark of 130 trillion yuan (about $18.08 trillion) and the country's grain output surpassing 700 million tons."
