Oil prices slightly bounced back after plunging 4% last night as U.S. data showed crude and gasoline stockpiles unexpectedly surged last week and an increase in output by OPEC+.
The international benchmark Brent crude closed Wednesday with a drop of $3.76 or 3.7% at $96.78 a barrel. Meanwhile, the West Texas Intermediate fell $3.76 or 4% to close at $90.66 per barrel.
However, oil prices made a slight gain in the morning of Asian trading session on Thursday as Brent crude gained 0.10% to $96.88 and WTI rose 0.18% to $90.83 a barrel.
U.S. crude oil inventories rose unexpectedly last week as exports fell and refiners lowered runs. Meanwhile, gasoline stocks posted an unexpected increase as demand slowed down, the Energy Information Administration said.
The American Petroleum Institute reported that crude stocks rose 4.5 million barrels for the week to July 29, which was contrasted to an analyst forecast for a draw of 600,000 barrels. Gasoline stocks rose by 200,000 barrels, compared to expectations for a 1.6 million-barrel drop.
Yesterday, OPEC+ agreed to raise production output by 100,000 barrels per day, which is equivalent to 0.1% of global demand. The increase was so small that analysts said it was a setback to U.S. President Joe Biden after his trip to Saudi Arabia to ask Riyadh to increase output.