Oil prices saw a rebound on Thursday after three consecutive days of decline, reaching their lowest levels since mid-March. Brent crude futures for July rose by 58 cents to $84.02 a barrel, while U.S. West Texas Intermediate (WTI) crude for June increased by 47 cents to $79.47.

The price recovery comes after a significant drop on Wednesday, when oil prices fell over 3% to a seven-week low following the U.S. Federal Reserve’s decision to keep interest rates steady and concerns over persistent inflation. Additionally, unexpected data from the Energy Information Administration showed a rise in U.S. crude inventories to their highest level since June, adding pressure to crude prices.

Although OPEC+ producers have not formally discussed extending oil output cuts beyond June, there is speculation that an extension could be agreed upon if demand remains subdued. However, analysts suggest that OPEC+ may face increasing pressure to unwind cuts next year as non-OPEC+ supply outpaces demand.

Source: Reuters