Oil prices dropped for a second consecutive session on Thursday as recovering energy supply from Russia and Libya as well as increased U.S. gasoline stocks eased supply fears.

After falling 0.4 percent the day before, Brent crude futures fell USD 2.36, or 2.2 percent, to USD 104.56 a barrel by 0816 GMT. Following a 1.9 percent decline on Wednesday, U.S. West Texas Intermediate oil futures dropped USD 2.49, or 2.5 percent, to USD 97.39 per barrel.

Oil prices have fluctuated because traders have had to balance recessionary concerns that could reduce energy consumption with a tighter global supply due to the loss of Russian barrels as a result of that country's invasion of Ukraine.

The European Central Bank will increase rates in line with other central banks, putting less emphasis on the economy's downturn, which could have an adverse effect on oil demand, and more emphasis on containing runaway inflation.

According to government data released on Wednesday, the increase in gasoline stocks in the US last week was 3.5 million barrels, significantly above analysts' predictions.

According to PVM analyst Stephen Brennock, "U.S. gasoline consumption is failing to move into top gear during the busiest summer driving season."

Meanwhile, Libya’s National Oil Corporation said that crudeoil production had resumed at several oilfields, after lifting force majeure on oil exports last week.

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