Rising supply from Libya steady Brent below $108

Brent crude held steady below $108 per barrel on track for its steepest one-week decline in four months, as rising supply from the US and Libya and muted demand outlook in China dragged down oil prices.

Strong crude output in the US pushed inventories to another record high while the global market could see more oil coming out of Libya as the government resumed operations at the eastern Zueitina port. State-run National Oil Corporation said that the Zueitina port was expected to load its first tanker of crude since reopening after nearly ten months.

Investors are looking ahead to economic data from the US, the euro zone and China to gauge fuel demand outlook.

June Brent crude edged up $0.01 to $107.77 a barrel. US crude was at $99.47 per barrel.

Some analysts also see an easing of the risk premium built into oil from the Ukraine crisis as investors turn their attention back to fundamentals.

US and European oil benchmarks tumbled mid-week after the US Energy Information Administration (EIA) released data showing a 1.7-million-barrel rise in US crude stocks.