Oil prices closed higher on Thursday, marking a third straight day of gains, after data showed a decline in U.S. gasoline and distillate draws, while concerns about supply disruptions in Russia also supported prices.

Brent crude futures settled up 44 cents, or 0.58%, at $76.48 a barrel. U.S. West Texas Intermediate (WTI) crude for March delivery rose 32 cents, or 0.44%, to $72.57.

The more actively traded April WTI contract rose 0.35% to $72.50 a barrel.

U.S. crude stockpiles rose slightly more than expected while fuel inventories fell last week as seasonal refinery maintenance led to lower processing, the Energy Information Administration said on Thursday.

"The crude build was slightly larger than expected, but there was a modest drawdown in gasoline and a larger drawdown in distillates, keeping total inventories stable," said Giovanni Staunovo, an analyst at UBS.

Crude futures extended gains after the report.

Russia and the U.S. have held their first meeting since the start of the Ukraine war, aimed at restoring ties and paving the way for an end to the conflict.

However, disruptions to oil supplies have kept prices high.

Russia attacked Ukrainian gas infrastructure and damaged a gas production facility overnight, Ukrainian Energy Minister German Galushchenko said.

Russia said oil flows through the Caspian Pipeline Consortium, a key route for crude exports from Kazakhstan, were reduced by 30%-40% on Tuesday after a Ukrainian drone attack on a pumping station.

Elsewhere, the potential resumption of oil flows from Iraq's Kurdistan region offset supply risks, analysts at ING said in a note. (Newsmaker23)

Source: Investing.com