Signs of sustained recovery in the U.S. economy helped lift crude oil prices Thursday from earlier losses sparked by indications of Chinese weakness.

West Texas Intermediate, the U.S. benchmark, gained only modest ground in early trading to hit $48.88, up more than 3 percent from the start of the week. Brent crude oil rallied to $53.81 per barrel, up about a half percent from Monday.

Crude oil prices started the week down after heavy losses on the Shanghai Composite Index. Chinese officials said there were still indications of growth, though the nation's economy was still facing strong headwinds.

In the United States, the Commerce Department said gross domestic product grew at 2.3 percent annually on the back of increased consumer spending, which offset weakness in spending from businesses. First quarter GDP was revised to show 0.6 percent growth after previous reports showed a 0.2 percent downturn.

GDP figures reflect sentiments expressed Wednesday by the U.S. Federal Reserve, which that said it expects "economic activity will expand at a moderate pace," assuming the appropriate supporting policies are in place.

Data published this week from the U.S. Energy Information Administration show indications of growing demand as the U.S. economy improves. Crude oil inventories declined 4.2 million barrels for the week ending July 24, suggesting recent market dynamics were pulling away from the supply side.

Crude oil prices remain depressed, however, as the increase in U.S. oil production balances against a global economy still struggling to repair damage incurred during the latest fiscal crisis.