Oil firms above January lows, but still pressured by surging supply, economic slowdown

Oil prices firmed on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets remain under pressure from rising US supply and a stalling global economy.

Front-month Brent crude futures were at $60.79 at 0718 GMT. That was 16 cents, or 0.3 percent, above last session's close.

US West Texas Intermediate (WTI) crude futures were at $51.84 per barrel, up 16 cents, or 0.3 percent, above their last settlement.

Brent and WTI on Wednesday hit their lowest levels since mid-January at $59.45 and $50.60 per barrel, respectively, amid a surge in US crude inventories and record production, and as a global economic slowdown was starting to hit energy demand.

Despite Thursday's gains, oil markets are moving into bear territory as defined by a 20 percent fall from recent peaks reached in late April.

US crude production rose to a record 12.4 million barrels per day (bpd) in the week to May 31, the Energy Information Administration (EIA) said on Wednesday, an increase of 1.63 million bpd since May 2018.

Amid the surging output, US commercial crude inventories jumped by 6.8 million in week to May 31, to 483.26 million barrels, their highest 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.