Shafaq News / Oil prices edged higher on Thursday after data showed US crude inventories fell again, easing concern about a supply glut, though lingering fears over the global economic fallout from the Covid-19 pandemic capped gains.

Oil futures continue to recover from weak levels recently tumbled, with crude production declining at a faster-than-expected pace, which reduces oversupply, which has caused storage facilities to become full.

Brent crude contracts ended the world record, trading session high $ 1.10, or 3.2%, to register at the settlement $ 35.75 a barrel, while US crude contracts rose $ 1.53, or 4.8%, to close at $ 33.49 a barrel.

US crude inventories fell by 5 million barrels last week, against expectations in a Reuters poll for a 1.2 million-barrel rise, Energy Information Administration (EIA) data showed, while stocks at the Cushing, Oklahoma, delivery hub dropped by 5.6 million barrels.

"What this report confirms, is that the worst nightmare, in which we do not find storage space, is not likely to happen," said Phil Flynn, chief economist at PRICE Futures Group.

"We need to see more evidence of a rebalancing, mainly through more demand," said Jane McGillian, director of market research at Tradition Energy.

The EIA data showed that gasoline stocks and distillate products in the United States rose last week as demand declined and weak refining margins may postpone a recovery in demand.

The oil gains are constrained by continued concern over the economic repercussions of the Corona virus pandemic, especially in the United States, the world's largest crude consumer.