Crude oil prices recovered lost ground early Thursday, continuing a market rebound sparked by an increase in demand at the consumer level.

Crude oil prices started in deep negative territory Wednesday, but moved modestly higher after a U.S. federal report showed a decline in gasoline inventories. That trend may indicate a short-term increase in demand from U.S. consumers capitalizing on a decline in retail gasoline prices.

Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.26 for Thursday, slightly lower than the previous day and 4.5 percent lower than one month ago.

That comes despite a sharp build in U.S. crude oil inventories, which would indicate a decline in overall demand. A research note emailed from Goldman Sachs finds the large buildup reported in U.S. crude oil inventories isn't a major threat to emerging balance on the global market.

"We do not view the recent excess US builds as derailing our forecast for a gradual draw in inventories, with in fact the rest of the world already showing signs of tightness," the note read.

An oversupplied market pushed crude oil prices to historic lows last year and the Organization of Petroleum Exporting Countries is balancing the increase in the United States with a managed decline in production.

The price for Brent crude oil was up 0.7 percent from the previous close to $55.50 per barrel about a half hour before the start of U.S. trading. West Texas Intermediate, the U.S. benchmark price for oil, was higher than Wednesday's close by 0.9 percent to $52.81 per barrel.

Elsewhere, the U.S. Labor Department reported first-time claims for unemployment for the week ending Feb. 4 declined 12,000 from the previous week, adding support to the trends at the consumer level as indicated by gasoline inventories.

The less-volatile four-week moving average declined 3,750 from the previous week for its lowest average since Nov. 3, 1973. The latest monthly labor figures show wages remain stagnant for most American workers, however.

U.S. President Donald Trump has pledged to support a stronger U.S. workforce. One of his first actions in office, however, was to place a freeze on federal hiring. The Labor Department reported the number of federal civilian workers leaving the workforce moved up 1,559 and newly-discharged veterans filing for unemployment increased 40 from the previous week.