WTI crude futures held above $72 per barrel on Thursday after gaining nearly 2% in the previous session, underpinned by industry data showing US crude inventories dropped by 1.246 million barrels last week, well below market expectations for a 433,000 barrel decline. Official data from the US Energy Information Administration will be released later on Thursday. Analysts also noted muted increases in US oil output and production cuts by OPEC+ that could limit crude supply in the coming months and lift oil prices. Meanwhile, Federal Reserve Chair Jerome Powell said in his testimony to Congress that more rate increases are likely ahead as inflation remains too high, hurting the outlook for the global economy and energy demand. Investors also fretted about an unsteady post-pandemic recovery in top crude importer China amid a lack of aggressive policy measures to support growth.
