Investing.com-- Oil prices ticked up in Asian trade Thursday after tumbling to near four-month lows in the previous session, weighed down by rising U.S. crude inventories, and speculations that OPEC+ would raise output again next month.
As of 21:52 ET (01:52 GMT), Brent Oil Futures expiring in December rose 0.5% to $65.67 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.5% to $62.09 per barrel.
Both benchmarks slid to near four-month lows on Wednesday, having lost nearly 7% so far this week. The sentiment remained fragile over supply glut worries sparked by OPEC+ supply increases and broader concerns about economic growth.
US crude stocks rise more than expected - EIA
Data from the U.S. Energy Information Administration (EIA) on Wednesday showed U.S. crude stocks rose by 1.8 million barrels in the week to Sept. 26, the first increase in three weeks.
Analysts had expected a rise of 1.5 million barrels, but the higher-than-expected build was seen as evidence of weaker refining activity and softer demand, weighing on prices after a sharp sell-off.
The data also showed gasoline inventories increased by 300,000 barrels to 228.7 million, while distillate stocks climbed 600,000 barrels to 120.9 million.
OPEC+ meeting looms with potential hike plan
The report comes as markets grappled with oversupply concerns following reports that OPEC+ could raise production again in November.
The group has already agreed to a modest increase of about 137,000 barrels per day for October, but reports stated that members may discuss a larger hike up to 500,000 barrels at their meeting on Oct. 5.
US shutdown risks add pressure
The U.S. government shutdown, which began on Wednesday after Congress failed to pass a funding bill, has added another layer of pressure on crude markets.
The closure could delay the release of key economic data such as the U.S. nonfarm payrolls report and inflation readings, depriving energy traders of signals on demand and monetary policy.
More broadly, the political standoff has unsettled financial markets, reducing risk appetite and weighing on commodities tied to global growth.