Oil steadied near the lowest settlement since December as an industry report pointed to a big draw in US crude stockpiles, with the market taking a breather following a sharp selloff this week.

West Texas Intermediate held near $69 a barrel after losing almost 6% since the start of the week. Brent closed lower at $72.70 on Wednesday. The American Petroleum Institute reported crude inventories dropped by 7.4 million barrels, according to people familiar with the data. That would be the biggest decline since June, if confirmed by official figures later Thursday.

Oil has tumbled this week on persistent concerns about the economic outlook in key consumers and expectations of ample supply.

Even indications that OPEC+ is considering a delay to a planned output boost from October didn't halt the slide, with Brent closing at the lowest level in more than a year. – CNBC