Oil prices steadied after two days of declines, as stock market losses offset drawdowns in U.S. inventories and supply disruptions in Libya.
Brent crude was trading below $79 a barrel after losing more than 3% over the previous two sessions, while WTI was near $75.
Goldman Sachs Group Inc. and Morgan Stanley cut their 2025 oil price forecasts this week, with both expecting a surplus next year.
Brent crude is set to fall slightly in August even after repeated declines in U.S. inventories, escalating tensions in the Middle East and a more than halved drop in Libyan oil production.
Oil remains modestly higher for the year, as expectations of lower U.S. interest rates and supply discipline from OPEC+ countries clash with weaker Chinese demand expectations. However, the specter of the alliance increasing supply from October looms large. Traders are divided on whether the planned increases will go ahead, according to a Bloomberg survey.
