Oil prices saw a slight increase after previously hitting multi-month lows, as major producers might postpone a planned output increase for next month and U.S. inventories declined. However, concerns about ongoing demand limited these gains.
Brent crude futures for November rose by 15 cents, or 0.1 percent, to $72.85 at 04:02 GMT, following a 1.4 percent drop in the previous session, marking their lowest close since June 27, 2023. Meanwhile, U.S. West Texas Intermediate crude futures for October also increased by 15 cents, or 0.22 percent, to $69.35 after a 1.6 percent decline on Wednesday, hitting their lowest settlement since December 11.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are contemplating a delay to the oil output increase scheduled for October, following a significant drop in prices, according to four sources from the group who spoke to Reuters on Wednesday.
Originally, OPEC+ intended to proceed with a 180,000 barrels-per-day (bpd) output increase in October, part of a strategy to gradually reverse its recent cuts of 2.2 million bpd. However, the potential resolution of a dispute affecting Libyan exports and weakening Chinese demand has prompted the group to reevaluate its plans.
Read more: Oil prices decline amid potential return of Libyan supply to the market
Upcoming data releases
Prices on Thursday were also bolstered by data from the American Petroleum Institute (API), which indicated that U.S. crude oil and fuel inventories fell last week, according to sources referencing the API figures released on Wednesday. The API reported a decrease of 7.431 million barrels in crude stocks for the week ending August 30, significantly surpassing analysts’ expectations of a 1 million barrel decline.
The Energy Information Administration (EIA) is set to publish its weekly U.S. oil inventory data on Thursday at 14:30 GMT.
Despite these factors, ongoing concerns about demand continue to limit price increases. Recent data from the Chinese government indicated that manufacturing activity in the world’s largest oil consumer dropped to a six-month low last month, as factory gate prices fell and producers faced challenges in securing orders.
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