Oil prices hovered near five-month lows in the preceding session, however, sentiment continued lower as markets are under pressure amid surging U.S. supply and a stalling economy.

Benchmark Brent crude was at $60.78, increased 15 cents or 0.3 percent in their previous settlement.

West Texas Intermediate (WTI) crude futures were at $51.84 per barrel was up 16 cents or 0.3 percent in their previous settlement.

On Wednesday, the two benchmarks hit their lowest levels since mid-January at $59.45 and $50.60, respectively.

“Ample supplies come on top of growth concerns related to the trade dispute escalation and put pressure on oil prices for the time being,” Norbert Rücker, head of economics at investment bank Julius Baer, said in a note.

Despite Thursday's gains, oil markets are touching into "bear" territory as defined by a 20 percent drop from current peaks touched in late April.

The Energy Information Administration (EIA) said that the U.S. crude production increased to a record 124.4 million barrels per day in the week to May 31, a growth of 1.63 million barrel per day since May 2018.

In a midst of surging yields, U.S. commercial crude inventories also soared to their highest levels since July 2017.

"Rising U.S. production is more than offsetting the efforts from the OPEC+ and if we add the negative effect a trade war could have on energy demand the result is lower prices," said Alfonso Esparza, senior analyst at futures brokerage OANDA.

Support by the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia, known as OPEC+ the oil prices has been rallied firmly since the beginning of the year to prop up the market.

However, outside OPEC+ supply is increasing not only in the United States. According to a news agency this week the oil yield at Kazakhstan’s Kashagan field touched a record 400,000 barrel per day. U.S sanctions limiting

Earlier, production at Kashagan was around 330,000 to 340,000 barrel per day. Output increased after end of maintenance in May.

Worldwide financial development took a dip late a year ago before recovering in early 2019, but analysts now warn development is stalling again.

Morgan Stanley dropped its forecast for increased in oil demand for 2019 from 1.2 million barrel per day to 1.0 million barrel per day, and cut its Brent price forecast for the second half of 2019 to $65-$70 per barrel, from $75-$80.

"The nascent recovery has stalled amid trade tensions," Morgan Stanley said.

“Demand is weakening much more rapidly than we had expected,” Morgan Stanley analysts said in a note on Wednesday.

“We now estimate 2019 to be a year in which supply and demand broadly balance,” the investment bank said.

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