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Global crude oil prices jumped by over a dollar per barrel on Thursday, driven by robust US economic data and worsening supply disruptions in Libya. 

Brent climbed $1.29, or 1.6%, closing at $79.94/barrel.

WTI saw a sharper increase, rising $1.39, or 1.9%, to settle at $75.91/barrel.

The surge was largely influenced by the ongoing turmoil in Libya, where oil exports from five key eastern ports have been suspended amid a standoff between rival political factions. According to Bloomberg, the disruptions have slashed Libya’s oil output by more than half this week, reducing production to less than 450,000 barrels per day.

Adding to the supply concerns, Iraq announced plans to cut oil output in September to compensate for overproducing over the past months in compliance with OPEC+. The country produced 4.25 million bpd in July and will reduce its output to between 3.85 - 3.9 million bpd next month.

Meanwhile, market sentiment was further bolstered by expectations that the U.S. Federal Reserve might begin cutting interest rates next month, a move anticipated to stimulate economic activity and support oil demand.

Written by: Rochelle Nguyen