Oil prices rose on Thursday, extending the previous day's rally, fueled by optimism about U.S. fuel demand due to an unexpected decline in crude and gasoline stockpiles, while reports suggested that OPEC+ might postpone a scheduled increase in production, the market found additional support.

Brent Crude added 0.5% to 72.90 per barrel while US WTI jumped by 0.5%, to $68.93 per barrel.

The two contracts increased by over 2% on Wednesday, recovering from a drop of more than 6% earlier in the week, driven by a diminished risk of a broader conflict in the Middle East.

According to the Energy Information Administration, U.S. gasoline stockpiles unexpectedly declined to a two-year low for the week ending October 25, driven by increased demand. Additionally, crude inventories also experienced an unexpected decrease as imports dropped.

Reuters reported that OPEC+ may postpone a scheduled oil production increase in December by a month or longer due to worries about weak oil demand and increasing supply.

The group is set to increase output by 180,000 barrels per day (bpd) in December, having previously postponed this increase from October due to declining prices.

OPEC+ is set to convene on December 1 to determine its upcoming policy measures.