Oil Rebounds on Supply Concerns Despite Demand Worries

Oil prices partially recovered on Wednesday following a significant drop the previous day, which ended a three-day upward trend. Investor sentiment fluctuated between concerns over potential supply disruptions in Libya and the Middle East, and worries about global fuel demand. While industry data indicating a decline in U.S. oil inventories provided some support, the market remains cautious due to ongoing geopolitical tensions. The potential for production shutdowns in Libya, coupled with the escalating conflict between Israel and Hamas, continues to pose risks to supply. Although there was a decrease in U.S. oil inventories last week, the lack of progress in ceasefire negotiations and the potential for the conflict to escalate further contribute to market uncertainty.