Brent crude oil prices edged higher on Thursday, with August Brent rising by 18 cents, or 0.21 percent, to $85.25 a barrel by 1023 GMT.
Similarly, US West Texas Intermediate (WTI) futures for July, which are set to expire on Thursday, increased by 3 cents, or 0.04 percent, to $81.60 a barrel. The more active August WTI contract saw a minor rise of 1 cent to $80.72.
The modest gains in oil prices come in the wake of subdued trading on Wednesday due to a US public holiday, Juneteenth, which resulted in no WTI settlement. The market remains sensitive to geopolitical tensions, particularly in the Middle East.
Early trade on Thursday saw Brent crude futures inch higher as the market reacted to news of Israeli tanks advancing into Gaza, heightening concerns over potential disruptions to oil supplies from the Middle East.
However, these fears are currently being overshadowed by expectations of an increase in US oil inventories, according to Priyanka Sachdeva, a senior market analyst at Phillip Nova.
Market participants are awaiting the release of US inventory data from the Energy Information Administration (EIA), which has been delayed by a day due to the holiday.
An industry report from the American Petroleum Institute (API) on Tuesday indicated that US crude stocks rose by 2.264 million barrels for the week ending June 14, while gasoline inventories saw a decline.
