Oil prices rose after months-long lows as major producers delayed planned output increases for next month and US inventories fell, but persistent demand concerns limited gains.
November Brent crude futures rose 35 cents, or 0.48%, to $73.05 a barrel by 0607 GMT after falling 1.4% in the previous session to hit their lowest closing level since June 27, 2023. October WTI Crude futures rose 35 cents, or 0.51%, to $69.55 a barrel after falling 1.6% on Wednesday to hit their lowest closing level since December 11.
The pessimistic sentiment in oil markets appears to be easing after strong API data and news that OPEC+ is reconsidering its production hikes raised hopes.
The group, known as OPEC+, is discussing delaying the oil output increase that was originally planned to begin in October as prices have fallen.
Last week, OPEC+ was set to continue increasing production by 180,000 barrels per day (bpd) in October, part of a plan to gradually roll back its latest 2.2 million bpd cuts.
But a dispute that has stalled Libyan exports and weak Chinese demand have prompted the group to reassess.
Prices also found support on Thursday after data from the American Petroleum Institute (API) showed WTI crude fell by 7.431 million barrels last week, more than analysts expected a 1 million barrel drop.
The overnight API figures were constructive and could be the biggest weekly decline since June if official government data later showed the same decline.
Weekly US oil stockpile data from the Energy Information Administration (EIA) is due on Thursday at 1430 GMT.
Markets were also awaiting US macroeconomic data gauges due later on Thursday.
In the short term, with key US economic growth data due today and tomorrow, speculators may be hesitant to take new bearish positions in WTI crude amid oversold readings in short-term momentum gauges.
Data released by the Chinese government over the weekend showed that production activity fell to a six-month low last month as factory gate prices fell and owners struggled to get orders.
Economically, the slowdown in China’s economy and weak oil demand, which surprised some in the market, have hurt market confidence.
