Brent crude oil steadied above $105 a barrel on Tuesday as geopolitical tensions in North Africa and the Middle East balanced ample supply in the Atlantic basin.
Brent crude declined five cents to $105.36 a barrel while US crude was up 22 cents at $98.51 a barrel, Reuters reported.
The news agency said worldwide oil demand has been running below supply over the last few months, following a supply glut in West African and Atlantic markets.
China experienced a slowdown in the services sector’s growth in July 2014, suggesting that a recovery in the economy is still weak and may need additional support from the government.
Meanwhile, oil output in Libya declined to about 450,000bpd from 500,000bpd last week.
A spokesman for the state-run National Oil Corp said oilfields were still secure despite clashes between rival militias in Tripoli.
Oil production has declined from 1.4 million barrels per day a year ago due to strikes by oil guards and violence that led to damage of Tripoli’s main airport.
A preliminary survey of analysts by Reuters indicated that US commercial crude oil inventories declined by about one million barrels in the week ending 1 August, with no change in gasoline stocks.