LONDON: Oil prices rose on Tuesday as expectations of a drawdown in US crude and product inventories outweighed news of higher Libyan production.
Benchmark Brent crude oil was up 40 cents at $53.52 a barrel by 1310 GMT. US light crude was 25 cents higher at $50.49 a barrel.
Both benchmarks recovered from four-month lows last week on expectations that the Organization of the Petroleum Exporting Countries (OPEC) would manage to tighten supply by cutting production under a deal agreed at the end of last year.
Demand is picking up ahead of summer in key markets, including the US, the world’s biggest oil consumer, where analysts forecast industry data this week will show a decline in oil inventories.
US crude stocks probably declined last week after rising for two consecutive weeks, and refined product inventories were also expected to have fallen, a Reuters survey showed.
But global inventories remain stubbornly high and investors are betting that it will take many months for oil prices to respond convincingly to lower OPEC output.
Libya’s crude output increased after state-owned National Oil Corp. (NOC) lifted a force majeure on loadings of Sharara oil from the Zawiya terminal in the west of the country, sources familiar with the matter told Reuters.
UBS analyst Giovanni Staunovo said OPEC was taking longer than expected to tighten the oil market but recent data suggested the process was now well under way.
“We believe the implemented production cuts will trigger a material drawdown in the Organization for Economic Co-operation and Development (OECD) oil inventories and thus higher crude oil prices,” Staunovo said. “We expect Brent oil prices to rise above $60 a barrel in three months.”
US light crude may drop to $49.62 a barrel as it failed to break resistance at $50.95, said Reuters commodities markets technical analyst Wang Tao. Brent crude may retrace back to $52.79 per barrel, he said.
Oil prices rise on forecasts of lower US inventories
Oil prices rise on forecasts of lower US inventories
Saudi industrial output jumps 8.9% in October on oil and manufacturing gains
RIYADH: Saudi Arabia’s industrial production jumped 8.9 percent in October from a year earlier, driven by higher oil output and broad gains across mining and manufacturing, official data showed.
According to a preliminary report from the General Authority for Statistics, the increase also reflects gains in electricity, gas and steam supply, as well as water, sewerage, waste management and remediation activities.
It also signaled steady month-on-month momentum, with the Industrial Production Index up 0.3 percent from September.
The latest industrial data reflects ongoing progress under Vision 2030, Saudi Arabia’s economic transformation plan aimed at diversifying growth and boosting industrial capacity.
The country’s economy expanded 4.8 percent in the third quarter compared with the same period in 2024, driven by gains in both oil and non-oil sectors.
In its new report, GASTAT stated: “In October 2025, the sub-index of mining and quarrying activity increased by 11.5 percent compared to the same month of the previous year.”
It added: “Saudi Arabia increased its oil production to 10 million barrels per day in October 2025 compared to 8.9 million barrels per day in October 2024. On a monthly basis, the sub-index of mining and quarrying activity increased by 0.4 percent.”
The report further showed that compared to October last year, the manufacturing activity sub-index rose by 5.5 percent, driven by an 8 percent rise in the production of coke and refined petroleum products, and an 8.1 percent rise in the manufacture of chemicals and chemical products.
On a month-on-month basis, the manufacturing activity sub-index increased by 0.9 percent, supported by a 1.5 percent jump in the production of coke and refined petroleum products, and a 2.7 percent rise in the manufacture of chemicals and chemical products.
“The sub-index of electricity, gas, steam, and air conditioning supply activity recorded an annual increase of 5.1 percent, and the sub-index of water supply, sewerage and waste management and remediation activities increased by 8.5 percent,” the report said.
It added: “Based on the month-on-month trend, the sub-index of electricity, gas, steam, and air conditioning supply activity decreased by 5.8 percent, and the sub-index of water supply, sewerage and waste management and remediation activities increased by 0.6 percent.”
Earlier this month, the World Bank upgraded its 2025 economic growth forecast for Saudi Arabia to 3.8 percent, up from its earlier estimate of 3.2 percent, citing renewed momentum in both oil and non-oil sectors.
In October, the International Monetary Fund also raised its economic growth forecast for the Kingdom to 4 percent for both 2025 and 2026.
