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Gulf Today Report 

Oil prices inched lower on Thursday giving up some of the recent strong gains on profit-taking and speculation that the market's strength could tempt producers like Saudi Arabia to reduce output by less.

Brent crude fell 40 cents, or 0.7%, to $61.07 a barrel, as of 03:50 GMT while US crude decline 35 cents or 0.6% to $58.33 a barrel.

Crude stocks decline in the previous week for a third week, reducing by 6.6 million barrels to 469 million barrels, according to Energy Information Administration. 

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According to some analysts, prices have moved beyond expectations and could encourage producers to open their taps a bit more.

Stephen Innes, chief global market strategist at brokerage Axi said, "despite finding support for the large draw in the US crude stockpiles... oil prices couldn't hold into its gains possibly on the expectation that Saudi Arabia could roll back their unilateral Feb/Mar production cuts and that OPEC could signal more production coming back online at the March meeting given the sizzling recovery in oil prices."

Since the kick-off of vaccination in November, crude has recorded gains. Large stimulus packages and supply cut by top producers have boosted economic activities.