Oil holds onto gains on demand concerns

Oil prices continued to rise as signs of tightening in the crude market overcame concerns about weak demand and kept prices in a narrow range. Brent crude was trading above $83 a barrel after closing 0.8 percent higher on Wednesday, while U.S. crude was around $78. The industry-funded American Petroleum Institute reported a big increase in U.S. crude inventories, though time frames suggest the market is tightening. Official data is due later on Thursday. Crude is trading near the high end of the year as investors weigh rising geopolitical risks in the Middle East and disruptions in the Red Sea against the outlook for weaker demand from top importer China. Minutes from the latest U.S. Federal Reserve meeting showed most officials were concerned about the risk of lowering borrowing costs too early. Israeli Minister Benny Gantz told a news conference that efforts were underway to seal a new deal in the Middle East to release hostages held by Hamas in Gaza. He reiterated that if the hostage deal could not be successfully negotiated, the Israeli army would enter Rafah during Ramadan.