Oil held gains as softening US inflation prompted optimism the rate-hiking cycle may be nearing an end, improving the demand outlook.

West Texas Intermediate traded near $76 a barrel after closing 1.2% higher on Wednesday as consumer price inflation fell to the lowest in more than two years and the dollar weakened. That overshadowed a 6-million-barrel increase in US crude stockpiles, the biggest jump in four weeks.

Reports from the International Energy Agency and OPEC due later Thursday will provide snapshots on the oil market, which is expected to tighten through the second half of the year, buoying prices. Global benchmark Brent closed above $80 a barrel on Wednesday for the first time since April.

Oil remains marginally lower this year, in part due the lackluster recovery in China, but OPEC+ heavyweights Saudi Arabia and Russia have pledged supply cuts to prop up the market. Russia's flagship Urals crude has breached a price cap set by the Group of Seven, a possible economic win for Moscow.

WTI for August delivery was steady at $75.78 a barrel at 8:01 a.m. in Singapore. Brent for September settlement was little changed at $80.16 a barrel.

Source : Bloomberg