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 were largely steady on Thursday, with traders holding fire after declines earlier this week on a stronger U.S. dollar and worries about rising supply amid slow demand growth. Brent crude futures were down 3 cents to $72.