Market Data 
Investing.com– Oil prices rose in Asian trade on Thursday, extending a rebound from four-month lows as optimism over lower interest rates in the coming months offset negative signals from an unexpected build in U.S. inventories.
Traders also second-guessed plans by the Organization of Petroleum Exporting Countries and allies (OPEC+) to begin scaling back production cuts this year, especially in the face of weaker prices.
expiring in August rose 0.5% to $78.80 a barrel, while rose 0.6% to $74.26 a barrel by 20:57 ET (00:57 GMT). Both contracts surged nearly 2% on Wednesday after sinking to four-month lows.
Rate cut hopes, bargain hunting support crude
Oil prices rose tracking a broader increase in risk-driven markets, as weak U.S. labor data fueled bets that the Federal Reserve will begin .
A rate cut by the on Wednesday, and an upcoming rate cut by the on Thursday also pushed up hopes over looser monetary policy, which traders hoped will help buoy oil demand later this year.
But the rate cuts come amid dismal economic conditions across the globe, which could still limit oil demand.
Still, crude prices also benefited from some bargain buying on Thursday, after fears of sluggish demand and higher supplies battered markets this week.
US inventories unexpectedly grow
Government inventory data showed on Wednesday that U.S. grew by 1.2 million barrels in the week to May 31, compared to expectations for a draw of 2.1 mb.
grew by a bigger-than-expected 3.2 mb, while grew slightly less than expected at 2.1 mb.
The overall builds in stockpiles raised some concerns over cooling demand in the world’s biggest fuel consumer, even as the travel-heavy summer season began.
OPEC+ could walk back phasing out supply cuts- Roth
Sustained weakness in oil prices could see the OPEC+ walk back on its plans to begin phasing out production cuts this year, Roth MKM analysts said in a note.
The cartel said at its latest meeting that it intends to begin scaling back 2.2 million barrels per day of production cuts from October 2024 to September 2025. This triggered a sharp decline in oil prices.
But weakness in the oil prices may see the OPEC+ postpone, or even put off any plans to increase production.
