LIVE UPDATES
Oil prices rose in early Asian trading on Thursday, extending strong gains in the previous session after the killing of a Hamas leader in Iran raised the threat of a wider Middle East conflict and on signs of strong oil demand in the US.
Global benchmark Brent crude futures rose 67 cents, or 0.8%, to $81.51 per barrel by 0007 GMT, while US West Texas Intermediate crude futures rose 69 cents, or 0.9%, to $78.60 per barrel.
The killings fuelled concern that the 10-month-old war in Gaza between Israel and Hamas was turning into a wider Middle East war, which could potentially lead to disruptions in oil supply from the region.
Also pushing up oil prices was a set of data releases from the US, the world's top oil consumer, and a weaker dollar.
According to the data from the US Energy Information Administration (EIA), US crude oil stockpiles decreased by 3.4 million barrels in the week ended July 26, reaching 433 million barrels.
This marks the fifth consecutive week of declining US oil stocks, the longest of such streak since January 2021.
Additionally, US oil demand reached a seasonal record in May, with gasoline consumption surging to its highest level since before the COVID-19 pandemic.
Furthermore, the US dollar index extended losses on Thursday, following the Federal Reserve's decision to hold interest rates steady but leave the door open for a potential rate cut in September.
A weaker US dollar can boost oil demand from investors holding other currencies.
