Despite growing demand, the price per barrel of crude oil remains below $90

Oil prices rose on Thursday as a U.S. energy watchdog anticipated a minor increase in demand and a decrease in supply until 2023. Fears of an economic slowdown, however, kept prices near eight-month lows.

Prior to a meeting of the European Central Bank, the dollar fell from 20-year highs, easing pricing pressures somewhat.

Brent oil prices, the international benchmark traded in London, rose 1.1% to $88.47 per barrel by 20:56 ET, while U.S. West Texas Intermediate crude oil futures rose 0.8% to $82.59 per barrel (00:56 GMT).

Weak Chinese economic data, interest rate hikes, and an unexpected surge in U.S. inventories fueled fears of a demand slowdown on Wednesday, when both contracts dropped to their lowest levels since January.

In its monthly Short-Term Energy Outlook report, the U.S. Energy Information Administration (EIA) forecasts that global crude demand will increase in the fourth quarter of 2022 and the first quarter of 2023, as rising natural gas prices prompt countries to switch to heating oil during the winter months. This year, the watchdog also forecasts a drop in U.S. oil production, a trend that is expected to be supportive of prices.

As Europe confronts an energy crisis triggered by Russia's suspension of a crucial natural gas pipeline to the bloc, demand may increase.

The EIA expects Brent oil to average approximately $98 per barrel during the fourth quarter. It also forecasts a decline in global petroleum demand between 2022 and 2023.

Numerous indicators of weak demand exert near-term pressure on oil prices. As economic growth in the world's top oil importer slowed to a crawl in August, China's crude imports decreased by about 10%, according to figures released on Wednesday.

In addition, the markets worried about a rise in global interest rates, which tends to reduce spending and reduce petroleum demand. On Wednesday, Canada raised rates to their highest level in 14 years, while the ECB will increase rates for the first time in 11 years.

In addition, the American Institute of Petroleum reported last week's unexpected increase in U.S. crude stockpiles, heightening concerns about a slowdown in global oil consumption. However, the drop in fuel stocks indicated that consumer demand remained healthy.

Traders anticipated that rising interest rates and weak economic growth would weigh on petroleum use, resulting in a fall in oil prices from earlier this year's highs.