Oil futures edge higher Thursday, consolidating after slumping in the face of a surging U.S. dollar, as investors weighed a forecast from the International Energy Agency and awaited U.S. inventories data.

Global oil markets face a surplus of more than 1 million barrels a day next year as Chinese demand continues to falter, cushioning prices against turmoil in the Middle East and beyond, the International Energy Agency said.

Oil prices rose about 1% on Thursday, paring some of the sharp declines seen earlier this week due to a stronger U.S. dollar and worries about rising supply amid slow demand growth. Brent crude futures were up 70 cents to $72.