Oil muted on Thursday, following previous gains, as a significant increase in US oil reserves countered the positive effects of yet another attack on vessels in the vicinity of Yemen.

Brent crude dipped 0.1%, to $82.94 per barrel, while U.S.WTI slumped by 0.1% to $77.83 per barrel.

According to British marine officials, two missiles were fired at a ship off the southeast coast of Yemen on Thursday, starting a fire inside. The Houthis are continuing their attacks on ships as a way of demonstrating their support for the Palestinians in the Gaza conflict.

Last week's increase in US crude stockpiles put pressure on the market.

The week ended February 16 saw a 7.17 million per barrel increase in U.S. crude stockpiles, according to market sources on Wednesday that cited data from the American Petroleum Institute. While distillate fuel inventories decreased, gasoline stockpiles also increased.

Despite the fact that the refineries are starting to produce again, large-scale outages have caused utilization rates to drop to their lowest point in two years, contributing to an increase in U.S. crude stockpiles.