08:54 AM EST, 03/06/2025 (MT Newswires) -- Oil traded up from a six-month low early on Thursday despite rising supply, higher U.S inventories and the threat of weakening demand amid trade wars launched by the United States.

West Texas Intermediate crude oil for April delivery was last seen up US$0.24 to US$66.55 per barrel, while May Brent crude was also up US$0.20 to US$69.50.

Prices fell to the lowest since September on Wednesday after the Energy Information Administration reported U.S. inventories rose by a more than expected 3.6-million barrels, while U.S. President Donald Trump's decision to launch trade wars against the largest U.S. trading partners have markets fretting over slower growth due to the U.S. tariffs.

Rising supply is also adding to the bearish outlook for oil. OPEC+ will begin returning 2.2-million barrels per day of production cuts in 18 monthly tranches beginning in April, even as non-OPEC supply is climbing, though falling prices may check growth in U.S. production, which rose to a record 13.51-million barrels per day last week.

"Trade war-related demand concerns (are) still weighing on prices, leading several banks to downgrade their 2025 price forecasts. We maintain a USD 65-85 range in Brent, with a potential drop lower eventually curbing supply, thereby adding fresh support," Saxo Bank noted.

Signs of slowing U.S. growth are on the rise following Trump's decision to ignore trade agreements and impose 25% tariffs on goods imports from Canada and Mexico, the two largest U.S. trading partners. A Wednesday report showed U.S. private-sector hiring collapsed last month while a Thursday report showed the U.S. January trade deficit swelled to a record US$131.4 billion in January, up from US$98.1 billion a month earlier and well ahead of the FactSet consensus estimate for a US$96.6 billion deficit as imports climbed 10% ahead of the imposition of tariffs.