Oil prices are on the rise after experiencing their largest daily jump in a month, with U.S. crude inventories marking their third consecutive weekly decline.

Brent crude traded above USD 85 a barrel after a 1.6 percent increase on Wednesday, while West Texas Intermediate exceeded USD 83 a barrel.

National stockpiles shrank by 4.87 million barrels last week, reaching their lowest level since February.

Although inventories typically fall this time of year, they are now below the five-year seasonal average.

Oil remains elevated year-to-date, bolstered by "OPEC+" supply cuts, which have offset increased production from non-alliance countries.

Expectations of a more lenient monetary policy in the United States have also supported crude oil, either by boosting appetite for riskier assets or weakening the dollar.

A weaker dollar makes commodities priced in the U.S. currency more attractive to most buyers.

Meanwhile, price spreads between different oil futures contracts have strengthened, indicating strong near-term demand. The gap between the nearest Brent contracts surpassed one dollar per barrel in backwardation, compared to 80 cents a month ago.