Oil prices ticked up on Thursday maintaining their recent gains., with a larger-than-expected weekly withdrawal from U.S. crude storage and optimistic demand forecasts following the U.S. Federal Reserve's indications of lower borrowing costs in 2024.

Brent crude added 0.31% at $74.49 per barrel meanwhile US WTI advanced by 0.16% at $69.58 per barrel.

Following a ship attack in the Red Sea, concerns regarding the security of oil supply in the Middle East caused the market to rise in the earlier session.

Prior to the Fed meeting, crude oil prices soared, and this event bolstered them even more.

Reduced borrowing costs for consumers due to lower interest rates can stimulate economic growth and increase demand for oil. Not only did the announcement lower oil prices for overseas buyers, but it also caused the dollar to drop for three consecutive sessions to the lowest level in four months.

A greater-than-expected withdrawal from the US crude inventories drove up prices.

The market was also helped by the easing of demand growth worries, as OPEC attributed the recent decline in crude prices to "exaggerated concerns" about the increase of oil demand in its most recent monthly report, which was made public yesterday evening.