Oil steady after surprise dip in U.S. crude stocks offsets demand fears

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Oil prices held on to previous day's gains in early trade Thursday as markets weighed a draw in U.S. crude oil stocks against the prospect of weaker demand.

The benchmarks had gained a dollar a barrel in the previous session as U.S. corn and soybean prices raced to multi-month highs, raising expectations that crop shortfalls around the globe could lower biofuels blending and increase oil demand.

Official inventory data from the U.S. Energy Information Administration is due later on Thursday. The report was delayed by a day following the Juneteenth public holiday on Monday. Higher interest rates ultimately increase borrowing costs for consumers, which could slow economic growth and reduce oil demand.

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