Oil Holds Steady as US Stock Draw Falls Short, Libya Supply Disrupted
OIL & GAS

Oil Holds Steady as US Stock Draw Falls Short, Libya Supply Disrupted

Oil prices remained largely stable due to a smaller-than-expected decline in US crude inventories and on-going concerns about demand from China, which offset supply disruptions in Libya.

Brent crude futures saw a minor decrease of 1 cent, or 0.01 per cent, settling at $78.64 per barrel as of 0043 GMT, whereas US West Texas Intermediate crude futures increased by 8 cents, or 0.1 per cent, to $74.60.

Both contracts had fallen by more than 1 per cent the previous day after it was reported that U.S. crude inventories had decreased by 846,000 barrels to 425.2 million barrels, a reduction that was less than the 2.3 million barrels predicted by analysts in a Reuters poll.

Despite the losses, concerns about supply disruptions from Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), helped limit further declines. Several Libyan oil fields had suspended production due to a struggle for control over the country's central bank. One consulting firm estimated that output disruptions could range from 900,000 to 1 million barrels per day for several weeks. Libya’s production in July was approximately 1.18 million barrels per day.

ANZ Research noted that supply-side issues were continuing to impact the market, stating that Libyan output had more than halved that week due to a political dispute, and further declines in output were possible as more fields might close.

Additionally, oil prices were supported by expectations that the US central bank might begin cutting interest rates next month. Federal Reserve Bank of Atlanta President Raphael Bostic mentioned that with inflation decreasing and unemployment rising more than anticipated, it could be appropriate to lower rates. Such cuts would reduce borrowing costs, potentially boosting economic activity and increasing oil demand.

      

Oil prices remained largely stable due to a smaller-than-expected decline in US crude inventories and on-going concerns about demand from China, which offset supply disruptions in Libya.Brent crude futures saw a minor decrease of 1 cent, or 0.01 per cent, settling at $78.64 per barrel as of 0043 GMT, whereas US West Texas Intermediate crude futures increased by 8 cents, or 0.1 per cent, to $74.60.Both contracts had fallen by more than 1 per cent the previous day after it was reported that U.S. crude inventories had decreased by 846,000 barrels to 425.2 million barrels, a reduction that was less than the 2.3 million barrels predicted by analysts in a Reuters poll.Despite the losses, concerns about supply disruptions from Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), helped limit further declines. Several Libyan oil fields had suspended production due to a struggle for control over the country's central bank. One consulting firm estimated that output disruptions could range from 900,000 to 1 million barrels per day for several weeks. Libya’s production in July was approximately 1.18 million barrels per day.ANZ Research noted that supply-side issues were continuing to impact the market, stating that Libyan output had more than halved that week due to a political dispute, and further declines in output were possible as more fields might close.Additionally, oil prices were supported by expectations that the US central bank might begin cutting interest rates next month. Federal Reserve Bank of Atlanta President Raphael Bostic mentioned that with inflation decreasing and unemployment rising more than anticipated, it could be appropriate to lower rates. Such cuts would reduce borrowing costs, potentially boosting economic activity and increasing oil demand.      

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?