Due to weak U.S. demand, oil prices rise after plunging to their lowest level in months

Oil prices climbed in early Asian trading on Thursday, rebounding from multi-month lows recorded in the previous session as a result of data showing slow gasoline usage in the United States.

Brent oil prices rose 53 cents, or 0.6%, to $97.31 a barrel by 00:20 GMT, while West Texas Intermediate (WTI) crude futures rose 55 cents, or 0.6%, to $91.21. Both benchmarks reached their lowest levels since February in the preceding session.

The Energy Information Administration said that U.S. crude oil stocks grew unexpectedly last week due to a fall in exports and a reduction in output by refiners, while gasoline inventories also increased unexpectedly due to a slowdown in demand.

On the supply side, ministers representing the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, referred to as OPEC+, agreed on a modest increase in the group's output target, equivalent to around 0.1% of global oil demand.

The United States has demanded that the group raise output, but spare capacity is limited and Saudi Arabia may be reluctant to do so at the expense of Russia, which has been penalized for its "special operation" in Ukraine.

Three participants told Reuters that OPEC+ cut its forecast for the oil market surplus this year by 200,000 barrels per day (bpd) to 800,000 bpd before to the summit.

Without giving statistics, the Caspian Pipeline Consortium (CPC), which connects Kazakh oil sources to the Russian port of Novorossiysk on the Black Sea, reported that supplies had reduced considerably, hence boosting prices.