The US Energy Department plans to buy up to 4.5 million barrels of oil to replenish the Strategic Petroleum Reserve (SPR).David McNew/Getty Images
On Thursday, US crude oil futures rose to $74.92 per barrel after two days of losses. Based on CNBC's report, the recent gain is seen in the light of traders weighing the supplies disrupted in Libya against weak demand from China.
In August, the US benchmark has hovered between $71 and $80 per barrel. At the time, VCPost has learned that it may even go up to $85 per barrel.
One of the major factors is the situation in Libya. According to Reuters. currently, there are rival governments that engage in political disputes, with one government threatening to stop oil production and exports from Benghazi in the east of the country. The confrontation raised concerns in the market, pushing oil prices higher early this week before pulling back as traders weighed the full impact of the disruption.
At the same time, weak demand from China has put additional pressure on oil futures, per RBN Energy.
Specifically, China's economic growth has been slow and the surge in electric vehicle sales is also reducing the need for crude oil. These factors have created a more bearish outlook for the market, balancing the potential supply disruptions with lower demand.
Alongside oil, other energy prices are experiencing mixed results. Brent crude rose to $78.87 per barrel, while gasoline prices remained steady at $2.22 per gallon. Meanwhile, natural gas futures fell slightly to $2.07 per thousand cubic feet, marking a 17.5% decline year to date.
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