Oil prices steadied on Friday, positioning themselves for a weekly gain as supply concerns from Libya and Iraq, alongside stronger-than-expected U.S. economic growth data, influenced the market.
However, weakened demand signals, particularly from China, capped further gains.
By 1041 GMT, Brent crude futures for October delivery, which expire today, were down by 7 cents, or 0.09%, trading at $79.87 per barrel.
The more actively traded November contract rose slightly by 5 cents, or 0.06%, to $78.87. U.S. West Texas Intermediate (WTI) crude futures increased by 6 cents, or 0.08%, to $75.97.
Both benchmarks had risen by over $1 the previous day and were up 1.1% and 1.6% for the week.
UBS analyst Giovanni Staunovo noted, “Oil prices benefit from the latest U.S. economic data suggesting a soft landing and no recession, which alleviates demand concerns.”
He added, “Conversely, falling exports in Libya and the anticipated reduction in Iraqi crude production for September should help maintain a tighter oil market.”
Libya’s oil production was significantly disrupted on Thursday, with over 700,000 barrels per day (bpd) offline and exports halted at several ports due to a political standoff.
Consulting firm Rapidan Energy Group has projected that production losses could reach between 900,000 and 1 million bpd and potentially last several weeks.
Additionally, according to a source familiar with the matter, Iraqi oil supplies are expected to decrease after the country’s production exceeds its OPEC+ quota.
