Oil prices edge higher amid Libyan supply concerns

Oil prices saw a modest rebound on Thursday August 29, recovering from two consecutive sessions of declines. This uptick was largely driven by renewed concerns about potential disruptions to Libyan oil supplies.

Brent crude futures increased by nine cents, or 0.11%, reaching $78.74 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures climbed by 15 cents, or 0.2%, to $74.67 per barrel.

The gains come after both benchmarks fell by over 1% on Wednesday, following a report indicating a drop in U.S. crude inventories. Last week, U.S. stockpiles decreased by 846,000 barrels to a total of 425.2 million barrels. This reduction was smaller than the 2.3-million-barrel cut forecasted by analysts in a Reuters poll.

Analysts pointed out that the recent market rally was fueled by heightened concerns over possible supply disruptions from Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC). These worries have contributed to the positive shift in oil prices, as traders adjust their expectations based on the potential impact on global oil supply.