TOKYO (Reuters) – Oil prices fell on Thursday, extending losses after official figures showed an unexpected rise in inventories in the United States although prices seem to have stabilised following a recent run of gains.

The price of oil dropped 11 cents per barrel to $78.53 per barrel by 0137 GMT on Thursday, following a 0.6% drop on Wednesday. U.S. crude oil dropped 5 cents per barrel to $74.78 per barrel after also falling 0.6% during the previous session.

The U.S. Energy Department’s Energy Information Administration (EIA), reported Wednesday that U.S. crude oil and fuel stocks increased in the week to Sept. 24.

EIA data shows that crude oil inventories increased by 4.6million barrels during the week ending Sept. 24, to 418.5 millions, compared to what analysts expected in a Reuters survey for a 1.7m-barrel drop. [EIA/S]

However, both contracts moved higher earlier in the session. Oil bulls could also be searching for the next hurdle to break after Brent rose above $80 on Tuesday for the third time in three years.

StoneX analyst Joseph Perry stated that oil prices of $80 are not excessively high.

As production returned to normal levels after Hurricane Ida, the increase in inventories was a result. Last week, output rose to 11.1million barrels per hour.

Next week, the Organization of the Petroleum Exporting Countries, along with its allies Russia (a group known as OPEC+), are expected to keep a deal for an increase of 400,000 barrels per hour (bpd), in its November output.

Analysts have stated that the power crisis in China and concerns about China’s housing market have impacted sentiment. Any fallout from China’s second largest economy could have a negative impact on oil demand.

China is the biggest importer of crude oil in the world, and it’s second-largest consumer after the United States.