Oil prices remained broadly stable on Thursday as a smaller-than-expected draw in U.S. crude inventories and continued concerns about demand from China counteracted supply disruptions from Libya.

Brent crude oil futures were down 1 cent, or 0.01%, at $78.64 a barrel at 0043 GMT, while US oil grade West Texas Intermediate Futures rose 8 cents, or 0.1%, to $74.60.

Both contracts lost more than 1 percent on Wednesday after data showed U.S. crude inventories fell by 846,000 barrels to 425.2 million barrels last week, less than expected by analysts in a Reuters poll who had expected a decline of 2.3 million barrels.

However, losses were limited due to concerns about supply disruptions from Libya, a member of the Organization of Petroleum Exporting Countries.

In Libya, production at several oil fields has been halted amid a struggle for control of the central bank. One consultancy expects production disruptions of between 900,000 and one million barrels per day for several weeks.

In July, Libya produced about 1.18 million barrels per day.

“Supply issues continue to weigh on the market. Libyan production has more than halved this week due to political disputes,” said a note from ANZ Research. “Production could fall further as more fields are shut down.”

Expectations that the US Federal Reserve will begin cutting interest rates next month also supported oil prices. Raphael Bostic, President of the Federal Reserve Bank of Atlanta, said that with inflation continuing to fall and unemployment rising more than expected, it may be time for interest rate cuts.

Lower interest rates reduce borrowing costs, which can stimulate economic activity and increase demand for oil.