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Oil prices were a tad higher on Thursday, as a weaker dollar offset lingering worries surrounding slowing economic growth.
Benchmark Brent crude futures were up 0.3 percent at $83.48 a barrel, while WTI crude futures were up 0.3 percent at $79.09.
The dollar index dropped from a three-month high on improved risk sentiment amid expectations that interest rates may have peaked.
Fuel demand worries persist after disappointing August PMI data signaled weaker economic activity in Asia, Europe and the U.S.
Data from U.S. Energy Information Administration (EIA) on Wednesday also showed an unexpected, substantial build in U.S. gasoline and distillate inventories over the past week, pointing to weakening U.S. fuel demand.
Gasoline stockpiles climbed 1.5 million barrels last week, as against forecast for an 888,000-barrel drop.
Distillate fuel inventories increased by 900,000 bbl, offsetting a bigger-than-expected draw in broader crude inventories.
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