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Brent crude futures had edged up 3 cents, or 0.04%, to $78.68 a
barrel by 1024 GMT, while U.S. West Texas Intermediate crude
futures were up 15 cents, or 0.2%, at $74.67.
Both contracts lost more than 1% on Wednesday, after data showed
U.S. crude inventories last week fell by 846,000 barrels to
425.2 million, smaller than the draw of 2.3 million expected by
analysts in a Reuters poll.
Worries over disruptions in supplies from Libya, a member of the
Organization of the Petroleum Exporting Countries (OPEC),
provided some price support, some analysts said.
The Libya supply issues, amid growing geopolitical concerns,
will keep oil markets on edge, and are likely to limit the
downside for 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.
"A prolonged shutdown from Libya will give OPEC+ a bit more
comfort in increasing supply in 4Q24 as currently planned," ING
analysts said in a client note.
The length of the supply disruption could have an effect on
OPEC+ production plans in October, which in turn could push up
oil prices if supply does not ease as expected.
"Traders are split on whether Libya's exports halts will impact
OPEC+ production plans...it remains to be seen if the policy is
altered given the bearish demand outlook and fears over the
global economy," said Panmure Liberum analyst Ashley Kelty.
Expectations for the U.S. central bank to start cutting interest
rates next month also supported oil prices. Federal Reserve Bank
of Atlanta President Raphael Bostic said it may be time for
cuts, with inflation down farther and unemployment up more than
anticipated.
(Reporting by Arunima Kumar in Bengaluru, Katya Golubkova in
Tokyo and Trixie Yap in Singapore; Editing by Miral Fahmy and
Jason Neely)
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