05:03 AM EDT, 08/30/2024 (MT Newswires) -- Crude oil prices advanced amid growing supply concerns in Libya and Iraq, but signs of weakened demand limited gains.

Brent crude gained 0.6% to US$80.40 per barrel and West Texas Intermediate crude rose 0.7% to US$76.42/b at last look early Friday.

More than half of Libya's oil production, or about 700,000 barrels per day (b/d), was offline on Thursday and exports were halted at several ports due to a political dispute in the country. Losses could hit 900,000 b/d to 1 million b/d, Reuters reported Friday, citing consulting firm Rapidan Energy Group.

Iraqi supplies are also expected to be reduced as the country works to stick to its quota as part of the Organization of the Petroleum Exporting Countries and its supply agreement. Iraq reportedly plans to reduce its output to between 3.85 million and 3.9 million b/d next month, Reuters reported, citing a source with direct knowledge of the matter.

"Ongoing concerns over dented Libyan supplies were magnified by Iraq's plans to tame production, which together can dent the global supplies of oil," Reuters quoted Priyanka Sachdeva, senior market analyst at Phillip Nova, as saying.

On the demand side, U.S. inventory data showed a smaller-than-expected crude stock draw and China's July imports hit its lowest level on a daily basis since September 2022 at 9.97 million b/d, according to the report.

"The market is concerned about the medium-term outlook, with oil balances for 2025 looking weak," ANZ analysts said in a note, as reported by Reuters. "We believe OPEC will have no choice but to delay the phase out of voluntary production cuts if it wants higher prices."