05:08 AM EDT, 03/20/2025 (MT Newswires) -- Crude oil prices climbed early Thursday on the back of a strong outlook for U.S. demand.

Brent crude gained 0.8% to US$71.37/barrel and West Texas Intermediate crude rose 0.8% to US$67.68/b at last look.

U.S. government data showing a higher-than-expected drop in distillate inventories, which fell by 2.8 million barrels, indicates a healthy outlook for U.S. demand, Reuters quoted analysts as saying. A poll conducted by the news agency had expected a drop of 300,000 barrels.

Crude is also finding support as global risk premiums remain elevated amid geopolitical developments in the Middle East, with Israel launching a new ground operation in Gaza on Wednesday. The U.S. also kept up airstrikes on Houthi targets in Yemen.