09:20 AM EDT, 09/06/2024 (MT Newswires) -- Oil prices rose off a nine-month low early on Friday, a day after OPEC deferred adding supply to the market for two months and a report showed an outsized drop in U.S. oil inventories, but demand concerns are likely to be at the fore after the U.S. added fewer new jobs than expected last month.

West Texas Intermediate (WTI) crude for October delivery was last seen up US$0.38 to US$69.53 after a day-prior drop to the lowest since mid-December. November Brent crude, the global benchmark, was up US$0.28 to US$72.97, after touching the lowest since June, 2023, a day earlier.

The rise follows on four losing sessions that cut the price of WTI by 8.9%. However OPEC+'s Thursday decision to postpone the return of 180,000 barrels per day of production cuts to the market is offering support, along with a day-prior report from the Energy Information Administration showing U.S. oil inventories fell by 6.9-million barrels last week.

"The 8 OPEC+ countries making voluntary adjustments opted to maintain the current production levels in place until December 1, affirming the principle they articulated in June that the taper is subject to revision and is not hardwired. While today's move is unlikely to serve as a significant price accelerator, it may indeed undercut the bearish narrative that was gaining traction," Helima Croft, Head of Global Commodity Strategy and MENA Research, at RBC Capital Markets said in a Thursday note.

However the focus remains on demand as the economies of the world's two largest oil consumers, the United States and China, continue to slow. China this week reported its manufacturing sector continued to contract and exports fell.

The U.S. Bureau of Labor Statistics on Friday reported the country added 142,000 jobs last month, up from 114,000 in June but under expectations for a rise of 161,000 positions, according to Marketwatch. The report is the latest to show a slowdown in the country's economy, firming expectations the Federal Reserve will cut interest rates from current 23-year highs when its policy committee meets later this month.

The report is one of three this week to show a slowing labor market, after private sector hiring and new job listings came in under expectations.