Oil slightly down on Thursday

Oil prices slightly down after a two-day decline, with stock market losses countering a drawdown in US stockpiles and supply disruptions in Libya. Brent traded below $79 a barrel after falling over 3 per cent in the last two sessions, while West Texas Intermediate (WTI) hovered around $75.

Stocks in Asia dipped as Nvidia Corp. earnings failed to impress investors. Meanwhile, Goldman Sachs Group Inc. and Morgan Stanley reduced their 2025 oil price forecasts, predicting a surplus next year due to China’s slowing recovery.

Despite repeated US stockpile declines, Middle East tensions, and a significant drop in Libya’s oil output, Brent is set for a slight decline in August. China, the world’s largest oil importer, is expected to miss its 5 per cent GDP growth target this year, weakening demand in Asia’s largest economy.

“Demand concerns from mainland China continue to cloud oil markets, especially as no credible signs of recovery are evident,” said Priyanka Sachdeva, a senior market analyst at brokerage Phillip Nova Pte in Singapore. However, she added that “Libyan disruptions amid geopolitical risks will continue to keep oil markets on edge.”

Crude remains modestly higher for the year, supported by expectations of lower US interest rates and OPEC+ supply discipline, although uncertainty looms over whether the cartel will boost supply from October.

Attribution: Bloomberg

Subediting: M. S. Salama