WASHINGTON (dpa-AFX) - Oil prices rose sharply on Thursday, with rising tensions in the Middle East and a big fall in U.S. crude inventories offering some support.
Benchmark Brent crude climbed 1 percent to $63.81 a barrel, after declining 1 percent in the previous session, marking its first fall in four session.
U.S. West Texas Intermediate crude futures were up 0.95 percent at $56.40 a barrel, after having dropped 1.6 percent on Wednesday.
The U.S. Energy Information Administration reported on Wednesday that U.S. crude inventories fell by 10.84 million barrels for the week to July 19, compared to forecast for a draw of 4 million barrels.
Gasoline inventories decreased by 226,000 barrels last week, while distillate stockpiles rose by 613,000 barrels.
The American Petroleum Institute (API) reported late Tuesday that oil inventory in the U.S. fell by 11 million barrels in the week to July 19, compared to analyst expectations of a much smaller 4 million barrel draw influenced by temporary factors.
With tensions in the Gulf spiking in recent weeks, investors have shrugged off a series of weaker than expected purchasing manager index (PMI) readings from the U.S. and Europe.
The military adviser to Iran's supreme leader was quoted on Wednesday as saying any change in the status of the Strait of Hormuz, which Tehran says it protects, would open the door to a dangerous confrontation.
Separately, Hassan Rouhani, Iran's president, hinted that Iran is open to a possible tanker swap with Britain and indirect talks with the United States over its nuclear program and sanctions.
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