(Bloomberg) — Oil steadied after a two-day drop, as technical barriers stymied gains from a decline in US stockpiles and disruptions to Libyan production.
West Texas Intermediate traded near $74 a barrel, while Brent crude closed around $79. Futures have lost almost 4% over the last two sessions after failing to breach the 200-day moving average. They have shrugged off a drop in US inventories to the lowest since January, and a more than halving of Libya’s oil output.
Crude is still modestly higher for the year as expectations of lower interest rates in the US and OPEC+ supply discipline counter a lackluster Chinese demand outlook. The specter of the cartel boosting supply from October is hanging over the market, although traders are split on whether the planned increases will go ahead.
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