Oil prices rose on Thursday, supported by a larger than expected weekly drop in U.S. crude oil inventories.

Brent rose 13 cents, or 0.2%, to $85.21 per barrel at 0023 GMT, while American West Texas Intermediate (WTI) crude rose 31 cents, or 0.4%, to $83.16. Brent rose 1.6% on Wednesday, and WTI

U.S. crude inventories fell by 4.9 million barrels last week, according to data from the U.S. Energy Information Administration. That compares to a drop of 30,000 barrels predicted by analysts in a Reuters poll, and a drop of 4.4 million barrels in a report by the American Petroleum Institute trade group

On the demand side, the prospects of interest rate cuts in the coming months in the United States and Europe helped support the market. Lower interest rates often prompt purchases and boost oil demand.

Federal Reserve officials said on Wednesday that the US central bank was “closer” to cutting interest rates given the improved inflation trajectory and a more balanced labor market, which could pave the way for a more balanced job market. Lower borrowing costs in September.

In addition, American economic activity grew at a low to modest pace from late May to early July, with businesses expecting slower growth in the future.