Oil made gains on Thursday after a report by the EIA revealed that U.S. crude stockpiles dropped 4.6 million barrels last week, beating forecasts by analysts.
Crude oil futures gained 0.717 percent to $63.48 a barrel.
Brent crude futures gained 17 cents or 025 percent to $68.19 a barrel.
According to the Energy Information Agency (EIA) report, for the week ended March 30, U.S. crude inventories fell 4.617 million barrels which eased worries by investors over the increases in U.S. shale production.
Analysts at ING Bank said that stronger exports has helped the inventory drawdown together with better refinery utilization.
In an effort by OPEC to prop up oil prices they have cut crude output by 1.8 million barrels per day.
Mohammed al-Sada, Qatar’s energy minister reportedly said that whilst there has been a recovery in prices there is no increase in investments and is in favour of maintaining curbs in oil supply.
In January 2017 OPEC entered into a pact to cut crude output by 1.8 million barrels per day to end global supply glut. The deal expires at the end of 2018, but Saudi Arabia want to extend the cuts to 2019.
Analysts at Commerzbank said that there is signs of an easing of the trade dispute between U.S. and China which has helped market sentiment, pushing up oil prices.
Gasoline futures fell 039 percent at $1.9760 a gallon.
Natural gas futures dropped 1.03 percent to $2.690 per million British thermal units.
Heating oil slipped 0.05 percent to $1.9764 a gallon.