Crude oil extended gains from the previous session supported by last week's larger-than-expected decline in US stocks.
Brent futures rose 58 cents (0.7%) to $85.66 a barrel and West Texas Intermediate (WTI) rose 75 cents (0.9%) to $83.60 a barrel.
Both contracts traded higher since Wednesday.
The US Energy Information Administration (EIA) reported US crude oil inventories fell by 4.9 million barrels last week.
It was forecast to fall by 30,000 barrels by some analysts for a drop of 4.4 million barrels in a report from the American Petroleum Institute trade group.
In addition, the prospect of interest rate cuts in the coming months in the U.S. and Europe will continue to help support the market.
Fed officials in their comments on Wednesday said the expectation of an interest rate cut is getting closer given the better trajectory of inflation and the labor market in balance. This may set the stage for a reduction in borrowing costs in September.
In addition, U.S. economic activity grew at a slight to moderate pace from late May to early July with firms expecting slower growth going forward.
Investors are also awaiting policy news from a key leadership gathering in China that ends on Thursday.
