Oil prices declined to a two-month low below $108 a barrel today, due to weak gasoline demand in the US and the possibility of more supply from Libya.
Exports from southern Basra continued despite an Islamist insurgency, easing supply disruption worries in Iraq.
Libya has restarted operations at the 340,000bpd El Sharara oilfield, which is expected to nearly double the country’s production.
Customs data revealed on Thursday that China reported a 10.2% increase in crude imports in the first six months of 2014.
The International Energy Agency forecast suggests that China’s total oil demand may increase by 355,000bpd in June 2014, or 3.5% for the entire year.
Global investors expect Beijing to take additional stimulus measures to support growth, which is expected to lift its fuel demand.
Reuters noted that fuel demand in the US has been disappointing despite a gradual recovery in the world’s largest economy.
Data from the US Energy Information Administration revealed that gasoline demand over the past four weeks was at 9.04 million barrels per day, down 0.4% from a year earlier.
Stockpiles of the motor fuel increased 579,000 barrels while crude inventories declined 2.4 million barrels in the week ending 4 July.