Libya39;s 300,000 bpd of supply still offline
U.S. crude stocks fall by 5.2 million barrels, API reports
Euro zone facing possible recession, ECB VP says
U.S. oil output to hit record high in 2024
Coming up EIA supply report, 1530 GMT

LONDON, Jan 10 Reuters Oil rose on Wednesday for a second day of gains, as Middle East supply concerns arising from the IsraelHamas war and the shutdown of a top Libyan oilfield offset rising U.S. output and worries about weak economic growth.

While the Organization of the Petroleum Exporting Countries and allies are cutting production to bolster the market, U.S. crude production will hit a record high in 2024, the Energy Information Administration said on Tuesday.

Brent crude futures were up 38 cents, or 0.5, to 77.97 per barrel at 1259 GMT, after earlier falling as low as 77.00. U.S. West Texas Intermediate crude futures added 32 cents, or 0.4, to 72.56.

The first few weeks of trading in a new calendar year often produces this kind of choppy price action, said Ole Hansen of Saxo Bank.

While supply disruptions remain an unrealised threat, the physical market is showing signs of actual weakness, basically reducing the geopolitical risk impact, he added.

Europe39;s weak economic outlook weighed on the demand outlook. The euro zone may have been in recession last quarter and prospects remain weak, European Central Bank Vice President Luis de Guindos said on Wednesday.

Crude on Tuesday gained about 2 after losses on Monday of more…