Crude oil futures made a significant recovery on Thursday, reversing a downturn experienced in the past several sessions.
Following a steep 8.0 percent decline over the preceding four sessions, October delivery crude surged by $1.01, gaining 1.4 percent to reach $72.94 per barrel.
The rebound in crude oil prices can be attributed to bargain hunting after recent declines and optimism that interest rate cuts in the U.S. and Europe might stimulate demand.
Investor interest was likely encouraged by a recent report indicating a sharp reduction in U.S. crude oil inventories for the week ending August 16th.
According to the Energy Information Administration, crude oil inventories dropped by 4.6 million barrels last week, following a 1.4 million barrel increase the week prior. Economists had anticipated a decrease of 2.8 million barrels.
The report also noted that motor gasoline inventories decreased by 1.6 million barrels, while distillate fuel inventories, including heating oil and diesel, fell by 3.3 million barrels.
Despite the price recovery, crude oil remains significantly below recent highs due to ongoing concerns over Chinese demand prospects.
