Oil prices edge lower after US crude stocks draw, Libya supply risks limit losses

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Oil prices edge lower after US crude stocks draw, Libya supply risks limit losses

stockpiles and as concerns over Chinese demand persisted, though losses were capped by supply risks in the Middle East and Libya.futures were down 62 cents, or 0.78%, at $78.93 a barrel by 11:20 a.m. EDT . U.S. West Texas Intermediate crude futures fell 66 cents, or 0.87%, to $74.87.

"It is a little surprising to see such small crude draw if refinery runs were really that strong, at a six-week high," said Matt Smith, lead oil analyst at Kpler."Ongoing strength in imports and a tick lower in exports helped keep the draw in check," he added. Several oilfields across Libya have halted output as a dispute continues between rival government factions over control of the central bank and oil revenue. The dispute puts about 1.2 million barrels per day of production at risk.

In the Middle East, fighting continued in the Gaza Strip between Israel and Hamas militants, with no signs yet of a concrete breakthrough in ceasefire talks in Cairo.

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U.S. crude oil falls nearly 2%, selloff gains speed as market dismisses Libya disruptionWorries about demand in China and an economic slowdown are preventing oil prices from breaking out.
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