Oil settles higher as investors assess market outlook

Oil fell as investors assessed potential shifts in crude supplies

Oil closed higher on Thursday, as investors weighed market prospects amid concerns of weakening US demand with the summer driving season nearing its end.

Brent crude futures for October delivery rose 0.84% (57 cents) to $68.62 a barrel.

WTI crude futures for October delivery gained 0.70% (45 cents) to $64.60 a barrel.

The rally in crude was supported by data released yesterday showing that US crude inventories fell for the second consecutive week.

However, analysts noted that the upcoming Labor Day holiday on Monday marks the end of the summer driving season in the US, suggesting weaker domestic fuel demand ahead, Reuters reported.

Gains were also capped as Russia resumed oil exports to Hungary and Slovakia through pipelines, after shipments were halted last week due to damage from Ukrainian attacks.