Crude Oil Gains Ground in Early Trade

28 Aug 2024 , 11:09 AM

Oil recovered on Wednesday after a dramatic drop in the previous session halted a three-day winning run as investors were torn between fears about probable supply losses from Libya and the Middle East and worry about global fuel demand.

Brent crude futures rose 25 cents, or 0.31%, to $79.80 a barrel. US West Texas Intermediate crude futures increased 17 cents, or 0.23%, to $75.70.

Prices are recovering following Tuesday’s more than 2% drop, which ended a three-day string of gains of more than 7%, as concerns over poor refinery profit margins impacted on forecasts for fuel demand despite statistics showing global consumption growth has been weaker than projected this year.

The market was also boosted by industry data issued late Tuesday, which showed that U.S. oil and fuel stockpiles declined last week.

The biggest risks, however, remain a potential loss of supply in Libya, where about 1.2 million barrels per day of production could be shut in due to a political dispute between rival government factions, and an escalation of the Israel-Gaza conflict to include militants in Lebanon and forces from Iran, a key Middle Eastern producer.

For feedback and suggestions, write to us at [e-mail]