By Natalie Grover<\/p>\n\n\n\n
LONDON (Reuters) -Oil prices were little changed on Tuesday as investors weighed a possible tightening of\u00a0U.S. crude\u00a0supplies against weaker-than-expected Chinese economic growth.<\/p>\n\n\n\n
Brent crude\u00a0was down 1 cent at $78.49 a barrel by 0753 GMT, while U.S. West Texas Intermediate crude edged up 1 cent to $74.16 a barrel.<\/p>\n\n\n\n
Both contracts fell more than 1.5% on Monday, following lacklustre Chinese data and the partial restart of some Libyan oilfields.<\/p>\n\n\n\n
Market participants were awaiting industry data later on Tuesday that is expected to show U.S. crude oil stockpiles and product inventories fell last week. [EIA\/S]<\/p>\n\n\n\n
Sluggish gross domestic product (GDP) data from China released on Monday “kept a cautious lid on prices with some reservations in its demand recovery,” said Jun Rong Yeap, a market strategist at IG in Singapore.<\/p>\n\n\n\n
China’s GDP grew 6.3% year-on-year in the second quarter, compared with analyst forecasts of 7.3%, as its post-pandemic recovery lost momentum.<\/p>\n\n\n\n
Meanwhile, U.S. shale oil production is projected to see its first monthly decline since December 2022, data from the Energy Information Administration showed on Monday.<\/p>\n\n\n\n
Still, global supplies are expected to see a boost from the resumption of output at two of three Libyan fields that were shuttered last week. Output was thwarted by a protest against the abduction of a former finance minister.<\/p>\n\n\n\n
“Brand new shiny months normally see OPEC wheel out friendly drop quotes or of late, the voluntary cut bombs as promised by Saudi enabling a surge in enthusiasm,” said PVM analyst John Evans.<\/p>\n\n\n\n
“But as the month moves on and the calendar comes across more data on economic performance and markers, a sense of pragmatism ensues and an inevitable deflation in mood.”<\/p>\n