Brent crude oil prices were on pace to hold above the psychological threshold of $50 per barrel as bullish sentiments gained momentum early Thursday.

Following trends for most of August, oil prices lost ground in overnight trading following major late-session gains, turned volatile in the hours before the start of trading in New York and then turned sharply positive.

Oil prices rallied sharply late Wednesday after the U.S. government reported declines in crude oil stocks that were larger than many analysts had expected.

The market carried the sentiment forward into Thursday, with important psychological thresholds within easy reach. The price for Brent crude oil was up 0.4 percent to start the day at $50.03 per barrel. West Texas Intermediate, the U.S. benchmark, was higher than the previous close by 1.1 percent, opening the day at $47.31 per barrel.

Crude oil prices are up 25 percent, or $10 per barrel, since the start of August, movement fueled in large part by rumors surrounding possible artificial action to stimulate prices by some members of the Organization of Petroleum Exporting Countries. An early 2016 effort to boost prices collapsed amid multilateral differences and some analysts are now saying the rally in crude oil prices is in response to verbal stimulus.

On the economic front, a report from Moody's Investors Service painted a mixed picture of global economic growth. Europe is an area of concern in the wake of the British decision to leave the European Union, the ratings agency lowered its 2016 growth estimate for the U.S. economy, though China is poised for near-term growth.

Moody's said the most immediate threat to the global economy may be the outcome of the U.S. presidential election.

"A change in U.S. policy stance that contributes to a weakening of the current global trade and security architecture could have a detrimental impact on global confidence and growth, and would prompt us to revise our forecasts," Madhavi Bokil, a senior analyst at Moody's, said in a statement.