09:17 AM EDT, 05/09/2024 (MT Newswires) -- Oil prices rose early on Thursday, moving up on tight supply amid solid demand as a day-prior report showed a drop in US oil inventories.

West Texas Intermediate crude oil for June delivery was last seen up US$0.55 to US$79.54 per barrel, while July Brent crude, the global benchmark, was up US$0.49 to US$84.07.

The rise comes after the Energy Information Administration on Wednesday said US oil inventories fell by 1.4-million barrel per day last week, easing concerns over light demand ahead of the start of the US driving season that begins over the Memorial Day holiday.

"Crude oil prices rose as US inventories signaled a tight physical market with crude stockpiles declining," Saxo Bank noted.

Geopolitical concerns remain a focus after US president Joe Biden said the United States will pause supplying bombs and artillery shells to Israel to prevent the country continuing to push into the city of Rafah in Gaza in order to limit civilian casualties in the crowded city. Ceasefire talks are continuing in Egypt with little progress reported.

A weaker US dollar also supported prices, as the US reported initial jobless claims rose by 231.000 last week, above expectations for a rise of 214,000 claims according to Marketwatch, and the highest since August,. The ICE dollar index fell sharply following the report, last seen down 0.08 points to 105.47.