Oil prices held gains on Thursday, despite the advance in the U.S. dollar, buoyed a report showing a larger than expected drop in U.S. crude stockpiles last week, which reflected the strength in U.S. demand.
Crude oil futures for September delivery rose to a high of $49.32 a barrel, the highest level this week, while currently trading around $49.09.
Brent crude resumed rebound to trade around $53.80, after hitting a high of $54.36.
The EIA report released on Wednesday showed that U.S. crude inventories dropped 4.2 million barrels in the week ended July 24, above analysts’ forecasts of a 100,000 barrels decrease.
The report offset some of the worries stemming from the drop in Chinese shares and oversupply in the market.
However, the advance in the U.S. dollar after a report showing the U.S. economy widened expansion in the second quarter to 2.3 percent lowered the gains in oil.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, climbed to a high 97.76 from the session’s opening of 97.24.