Crude oil futures ended slightly higher on Thursday. Recent data showing a larger than expected drop in crude inventories in the US, and expectations that Saudi Arabia will extend its voluntary production cut into the next month supported oil prices. However, gains were limited as the dollar surged higher amid speculation the Federal Reserve might hold interest rates higher for longer. Besides, worries about the outlook for fuel demand following disappointing August PMI data signaling weaker economic activity in Asia, Europe and the US, contributed as well to the limited upside in oil prices.
Benchmark crude oil futures for October delivery gained $0.16 or about 0.2 percent to settle at $79.05 a barrel on the New York Mercantile Exchange. Brent crude for October delivery added $0.15 or 0.2 percent to settle at $83.36 a barrel on London's Intercontinental Exchange.