2021.09.0910:50:00UTC+00Oil Edges Higher In Cautious Trade

Oil edged higher in cautious trade Thursday, as a draw in crude inventories and a decline in U.S. Gulf of Mexico output offset concerns over the spread of the Delta variant coronavirus.

Benchmark Brent crude edged up 0.3 percent to 72.79 a barrel, while West Texas Intermediate (WTI) crude futures were up 0.2 percent at $69.44.

Prices remain supported by lower U.S. output because of damage caused by Hurricane Ida.

About 77 percent of U.S. Gulf production remained offline on Tuesday, equating to about 1.4 million barrels per day (bpd).

American Petroleum Institute (API) data showed a smaller than expected decline in crude inventories for the week ended Sept. 3, but gasoline and distillate drawdowns were bigger than expected.

EIA data will be in focus later, after the body released its short-term energy outlook on Wednesday. The report contained slight downward revisions to its global oil demand forecasts for this year and next.