Oil prices steadied on Thursday, after two sessions of losses, as supply concerns over Libya returned to focus, while a smaller-than-expected draw in U.S. crude inventories sapped demand expectations.
Brent crude futures slipped 7 cents, or 0.09%, to $78.58 a barrel by 0812 GMT, while U.S. West Texas Intermediate crude futures edged 1 cent lower, or 0.01%, at $74.51.
Both contracts lost more than 1% on Wednesday, after data showed U.S. crude inventories dropped 846,000 barrels to 425.2 million last week, missing analyst expectations in a Reuters poll for a draw of 2.3 million.
Worries over disruptions in supplies from Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), were positive for the market, some analysts said.
The Libya supply issues, amid growing geopolitical concerns, will keep oil markets on edge, and are likely to limit downside to prices, said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
Some oilfields in Libya have halted production amid a fight for control of the central bank, with one consulting firm estimating output disruptions of between 900,000 and 1 million barrels per day (bpd) for several weeks.
Libya’s July production was about 1.18 million bpd.
The length of the supply disruption could have a spillover effect on OPEC+ production plans in October, which in turn could push up oil prices if supply does not ease as expected.
Source : Reuters
