Oil edges up, but Brent remains below $73

Oil drilling rigs

Oil prices edged up today, May 4, after sharp losses over the past two sessions, as investors assessed demand and supply outlook amid a weaker dollar.

International benchmark Brent crude was trading up 0.75% at $72.87 a barrel, at 08:08 am Makkah time.

West Texas Intermediate (WTI) crude rose 0.55% to $68.97 a barrel.

Meanwhile, the dollar index, which measures its value against a basket of major currencies, fell by 0.25% to 101.09 points, decreasing pressure on commodity prices denominated in the US currency.

Latest data from the Energy Information Administration revealed that crude inventories decreased by 1.3 million barrels in the United States during the past week, with gasoline stocks increasing by 1.7 million barrels.

The data showed a significant decrease in fuel demand in the country before the summer driving season, which usually witnesses peak consumption during the year. Demand fell by 9.4% to 8.6 million barrels per day.

Meanwhile, Russia's crude exports jumped above 4 million barrels per day in the week ended April 28, a level it has surpassed only once since its forces invaded Ukraine in February 2022, according to Bloomberg data.