2020.04.1610:27:00UTC+00Oil Prices Recover After US Stockpile Surge

Oil prices rebounded on Thursday after sharp losses in the previous session on the back of dismal U.S. economic data and persistent worries over the economic fallout from the coronavirus pandemic.

Benchmark Brent crude rallied 3.25 percent to $28.59 a barrel, while WTI crude futures were up 2.2 percent at $20.29.

Prices bounced back after official data showed U.S. inventories surged the most on record, raising hopes that U.S. producers will cut output in coming months as the coronavirus pandemic ravages demand.

Data released by the Energy Information Administration (EIA) on Wednesday showed crude oil inventories in the U.S. increased by 19.2 million barrels in the week ended April 10, much larger by an expected increase of about 12 million barrels.

The report also showed large U.S. refined fuels stock builds despite refiners operating at 69 percent of capacity nationwide, the lowest since September 2008.

The figures followed a report from the International Energy Agency (IEA) that forecast a 29 million barrel per day (bpd) dive in April oil demand to a level last seen in 1995.

"There is no feasible agreement that could cut supply by enough to offset such near-term demand losses," the IEA said in its closely-watched monthly report.