Oil prices are heading for a weekly increase due to supply concerns.
Oil prices stabilized on Friday, heading for a weekly increase, as disruptions in Libyan production and Iraq’s plans to curb output raised concerns about supply.
Oil prices stabilized on Friday, on track for a weekly gain, as disruptions in Libyan production and Iraq’s plans to reduce output heightened supply concerns. Meanwhile, data showing that the U.S. economy grew faster than initially estimated eased recession fears.
However, signs of weakening demand, particularly in China, capped gains.
Brent crude futures for October delivery, which expire on Friday, fell by 7 cents, or 0.09%, to $79.87 per barrel. The more actively traded November contract rose 5 cents, or 0.06%, to $78.87.
U.S. West Texas Intermediate (WTI) crude futures added 6 cents, or 0.08%, to $75.97 per barrel.
The day before, both benchmarks had risen by more than $1, and so far this week, they have gained 1.1% and 1.6%, respectively. Additionally, a drop in Libyan exports and the prospect of lower Iraqi crude production in September are expected to help keep the oil market undersupplied.
Over half of Libya’s oil production, around 700,000 barrels per day (bpd), was halted on Thursday, and exports were suspended at several ports due to a standoff between rival political factions.
Meanwhile, Iraqi supplies are also expected to decline after the country exceeded its OPEC+ quota, a source with direct knowledge of the matter told Reuters on Thursday.
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