A view of the Johan Sverdrup oilfield in the North Sea, Jan 7, 2020. Carina Johansen/NTB Scanpix/via REUTERS/File photo
Oil prices made a slight recovery during early trading on Tuesday following a decline in the previous session due to weaker-than-expected Chinese economic growth. Investors are now focused on the potential tightening of U.S. crude supplies.
Brent crude increased by 11 cents to $78.61 a barrel by 0017 GMT, while U.S. West Texas Intermediate crude rose 15 cents to $74.30 a barrel.
Both contracts experienced a decrease of over 1.5 percent on Monday.
Investors are awaiting industry data later on Tuesday, which is expected to reveal a likely decline in U.S. crude oil stockpiles and product inventories from the previous week.
In addition, data from the Energy Information Administration showed that U.S. shale oil production is projected to decrease to nearly 9.40 million barrels per day (bpd) in August. This would mark the first monthly decline since December 2022.
However, there may be a boost in global supplies with the resumption of output at two out of three Libyan fields that were previously shut down. The shutdown was a result of a protest against the abduction of a former finance minister.
Concerns about China’s economy are currently suppressing prices. The country’s gross domestic product (GDP) grew by 6.3 percent year-on-year in the second quarter, falling short of analyst forecasts of 7.3 percent and indicating a loss of momentum in its post-pandemic recovery.
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