09:18 AM EDT, 04/25/2024 (MT Newswires) -- Oil edged up early on Thursday, rebounding from a day-prior loss on a large drop in US inventories reported on Wednesday, while US first-quarter gross domestic product rose less than expected in the first-quarter. .

West Texas Intermediate crude oil for June delivery was last seen up US$0.03 to US$82.84 per barrel, while June Brent crude, the global benchmark, was up US$0.03 to US$88.05.

The rise comes as investors digested Wednesday's inventory report from the Energy Information Administration, which showed an unexpected drop in stocks of 6.4-million barrels, while gasoline inventories fell less than expected and distillate stocks rose, signaling low demand.

"While prompt spreads in both WTI and Brent point to tightness, refinery margins, especially for diesel remain under pressure. A supportive 6.4m bbl stock drop reported by the EIA was offset by slowing end user demand for both gasoline and diesel," Saxo Bank noted.

The rise also comes on hopes the Federal Reserve will move to lower interest rates after the US Bureau of Economic Analysis reported first-quarter gross domestic product rose by 1.6% in the first quarter, well under the consensus estimate for a 2.2% rise, according to Marketwatch, and under the 3.9% rise in the fourth quarter of 2023.