As investor caution predominated ahead of inflation figures anticipated to provide hints on U.S. interest rates, oil prices stabilized on Thursday.

Brent crude slumped to $87.43 per barrel meanwhile West Texas Intermediate crude dipped 21 cents to $84.19 per barrel.

Recent days have seen an increase in oil prices due to Saudi Arabia and Russia extending their production cutbacks, as well as supply concerns brought on by the possibility that hostilities between Russia and Ukraine in the Black Sea region could disrupt Russian oil exports.

On Thursday, the U.S. Consumer Price Index for July will be released, and this information should give the U.S. Federal Reserve some direction for its next monetary policy.

According to data, U.S. crude oil exports dropped by 2.9 million barrels per day last week, the highest decline ever. But according to Phil Flynn, an analyst at Price Futures Group, the market anticipates a surge in oil exports as a result of the Brent spread and U.S. crude futures.

Recent data revealed that China's consumer sector entered deflation and factory gate prices continued to decrease in July, raising questions about the country's fuel demand.