Oil steady after two-day gain as supply issues blunt demand woes

Oil steadied after two days of gains with an uncertain demand outlook being partially offset by disruptions to supply from Iraq.

West Texas Intermediate traded near US$79 a barrel after rallying around two per cent over the previous two sessions. Fuel markets are slumping as refining margins shrink in Asia, with a hoped-for sharp rebound in China still proving elusive.

Oil shipments from Iraqi Kurdistan remain paused — causing some tankers to leave ports there empty-handed. There are also supply risks in Sudan, where heavy fighting continued between rival groups.