Oil futures stabilised after recent losses, as concerns about supply disruptions in Libya continue.
Production in Libya has been halted due to conflicts over central bank control, leading to significant output reductions estimated between 900,000 and 1 million barrels per day.
In the U.S., a smaller-than-expected drop in crude inventories has tempered demand expectations. U.S. crude inventories fell by 846,000 barrels, less than the anticipated figures, leading to mixed market sentiment.
However, the possibility of the U.S. Federal Reserve lowering interest rates next month, as suggested by Federal Reserve Bank of Atlanta President Raphael Bostic, is providing some support. Lower interest rates could stimulate economic activity and increase oil demand.
Market participants are now focusing on the release of the U.S. GDP quarterly figures later today. The consensus is for an improved growth rate, with the U.S. economy expected to expand by 2.8% in Q2, up from Q1’s 1.4% quarter-on-quarter growth. If the GDP data indicates stronger economic growth, it could suggest higher energy demand going forward, potentially supporting crude prices.
