Oil prices steadied on Thursday after four days of declines on investor concern over the global demand outlook, though a drop in U.S. fuel inventories provided a floor.

Nvidia (NASDAQ:NVDA), a key player in the AI boom of the past two years, is set to report its second-quarter earnings for fiscal 2025 next week.

The UK's benchmark FTSE 100 stock index rose on Thursday, as rising optimism around an imminent interest rate cut by the U.S. Federal Reserve boosted sentiment, while JD (NASDAQ:JD) Sports gained after the sportswear retailer reported higher quarterly sales.

European stocks ticked higher, oil fell for a fifth straight day and the dollar remained subdued on Thursday after Federal Reserve minutes signalled U.S. interest rate cuts were set to begin in a few weeks' time.

Oil prices edged higher Thursday, helped by an unexpected draw in U.S. inventories, but remained on course for hefty weekly losses as weak U.S. labor data added to ongoing global demand concerns. 

Business activity data helped lift the pound to a new 13-month high against the dollar on Thursday and kept the euro just shy of a similar peak, with the equivalent U.S. numbers and jobless claims figures to come later in the day.