Oil prices rebounded, on Wednesday, from sharp losses in the previous session as concerns over tightening supplies from Russia and Libya dominated, while industry data showed a decline in US crude stocks last week.
On Tuesday, the Libyan National Oil Corporation declared force majeure at the Brega oil port. The corporation said, “It is unable to fulfill its obligations towards the oil market.”
Brent crude futures rose 66 cents, or 0.6 percent, to $107.91 a barrel this morning, while West Texas Intermediate crude futures for the month to maturity, which expire on Wednesday, rose 46 cents, or 0.5 percent, to $103.02 a barrel. The second month contract increased 64 cents to $102.69 a barrel.
Both benchmarks fell 5.2 percent in volatile trading, on Tuesday, after the International Monetary Fund on Tuesday cut its global growth forecast by a full percentage point, citing the economic effects of the Russian war in Ukraine, and warning that inflation is now a “clear and present risk” for many countries.