Oil prices remain below $80 amid supply concerns
Oil prices are trading below $80 amid daily fluctuations on Thursday, influenced by global supply concerns and geopolitical issues.
International benchmark Brent crude increased 0.21% to $77.74 per barrel, up from the previous session's close of $77.58.US benchmark West Texas Intermediate (WTI) rose by 0.27% to $74.72 per barrel, after closing at $74.52 in the prior session.
Weak economic data from China, the world's largest oil importer, and the US, the largest oil consumer, triggered a fall in Brent oil prices after trading at $80.40 on Aug. 15.
On Aug. 26, following the declaration of the eastern-based Libyan Government, headed by Osama Hammad, to suspend oil production in the country, Brent prices once again climbed above $80, hitting $80.20 during the day, due to global supply concerns.
However, prices failed to reach this level in the past three sessions and remained below $80.
Both benchmarks marked a partial increase on Thursday following data from the Energy Information Administration (EIA) indicating a daily drop in US crude oil inventory by 800,000 barrels, compared to the market prediction of a fall of around 2.7 million barrels.
Concern over potential supply shortages due to the suspension of oil production in Libya supported upward price movements.
Due to conflicts over the management of the Central Bank, the government of Libya, which is based in the east and is led by Osama Hammad, declared "force majeure" on Monday in all oil fields, ports, and institutions and said that oil production and exports would be suspended.
Libya, one of the major members of the Organization of the Petroleum Exporting Countries (OPEC) group, produced 1.18 million barrels of crude oil per day in July.
Meanwhile, conflict between Russia and Ukraine lent upward support to oil prices by fueling market players' supply fears as both countries continue to target critical energy infrastructures.
Similar news
