Oil Prices Stabilize After Gains Fueled by US Economic Data and Libyan Supply Disruptions

Oil prices stabilized on Thursday after a surge driven by positive US economic data and worsening supply disruptions in Libya. Brent crude oil settled near $80 per barrel, while US crude held below $76. A revised estimate revealed that the US economy grew stronger than previously thought in the second quarter, bolstering confidence. Meanwhile, production cuts in Libya are expected to deepen this week, with output halving due to escalating unrest. The National Oil Corporation of Libya reported over $120 million in losses due to the shutdown of oil and gas wells. Despite these positive factors, Goldman Sachs and Morgan Stanley lowered their oil price forecasts due to disappointing demand expectations in China, the world’s largest oil importer. OPEC+ is poised to bring back some supply in the fourth quarter, which could impact prices. ANZ Group Holdings analyst Daniel Hynes suggested that OPEC might need to delay its planned production increases if it seeks higher prices.