Oil set for weekly gain on supply concerns
Oil prices steadied on Friday on track for a weekly gain as Libyan output disruptions and Iraqi plans to curb production raised supply concerns, while data showing the U.S. economy grew faster than initial estimates eased recession fears. Still, signs of weakened demand, particularly in China, limited gains. Brent crude futures for October delivery , which expire … The post Oil set for weekly gain on supply concerns appeared first on Asaase Radio.
Oil prices steadied on Friday on track for a weekly gain as Libyan output disruptions and Iraqi plans to curb production raised supply concerns, while data showing the U.S. economy grew faster than initial estimates eased recession fears.
Still, signs of weakened demand, particularly in China, limited gains.
Brent crude futures for October delivery , which expire on Friday, were down 7 cents, or 0.09%, at US$79.87 a barrel by 1041 GMT. The more actively traded contract for November inched up 5 cents, or 0.06%, to US$78.87.
US West Texas Intermediate crude futures gained 6 cents, or 0.08%, to US$75.97.
A day earlier both benchmarks settled more than US$1 higher and were up 1.1% and 1.6% respectively for the week so far.
“Oil prices benefit from latest U.S. economic data suggesting a soft landing and no recession, reducing demand fears,” UBS analyst Giovanni Staunovo said.
“On the other hand, falling exports in Libya and the prospect of lower Iraqi crude production in September should help keep the oil market undersupplied.”
More than half of Libya’s oil production, or about 700,000 barrels per day (bpd), was offline on Thursday and exports were halted at several ports following a standoff between rival political factions.
Consulting firm Rapidan Energy Group has estimated production losses could reach between 900,000 and 1 million bpd and last for several weeks.
Meanwhile, Iraqi supplies are also expected to shrink after the country’s output surpassed its OPEC+ quota, a source with direct knowledge of the matter told Reuters on Thursday.
The post Oil set for weekly gain on supply concerns appeared first on Asaase Radio.
