Oil prices settled mixed Thursday as oversupply fears eased following a decline in U.S. inventories.

The U.S. crude oil inventories dropped by a sharp 6.4 million barrels in the May 26 week to 509.9 million, up 1.1 percent from last year at this time, according to data released by the U.S. Energy Information Agency on Thursday.

Analysts said the decline far exceeded the market expectation and eased concerns for lingering global glut.

The West Texas Intermediate for July delivery added 0.04 U.S. dollar to settle at 48.36 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery erased 0.13 dollar to close at 50.63 dollars a barrel on the London ICE Futures Exchange.