Oil prices rose on Thursday, reversing two days of declines, as investors reevaluated US inventory data and returned to buying.
Brent crude and WTI futures both saw gains of around 0.4%, with Brent at $86.40 and WTI at $81.74.
Prices were on track for a third straight monthly increase, up about 4.5% from last month.
The previous session saw a decline due to unexpected increases in US crude and gasoline inventories.
The increase in crude oil stocks in the US was smaller than expected, according to the American Petroleum Institute.
This news, along with rising refinery utilization rates, supported the price of crude oil.
A Fed governor also indicated that recent inflation data may prevent the US Federal Reserve from cutting interest rates in the near term, but a rate cut could still happen later in the year.
Analysts at JPMorgan predict that both the Fed and European Central Bank will begin cutting interest rates in June.
The text discusses how lower interest rates can boost oil demand.
The focus is on an upcoming meeting of the Joint Monitoring Ministerial Committee of OPEC, where supply concerns may arise due to geopolitical risks.
OPEC and its allies, referred to as OPEC+, are unlikely to make any oil output policy changes until their full ministerial gathering in June.
Any indication of members not adhering to current production quotas could be seen as negative by analysts.
The ongoing tension between Israel and Hamas in the Middle East is keeping geopolitical risks high.