Oil prices stabilized above $78 in international markets as traders weighed demand in the US and China alongside tensions in the Middle East and cut supplies from Libya.

On the London market, the price of a barrel after noon remained almost unchanged compared to yesterday's close of trade and reached $78.29. Yesterday it closed the trade with a profit of 1.85 dollars.

There were no visible changes even today in the American market, where a barrel of oil traded at $75.33. Yesterday, it ended trading with a profit of $2.03.

Markets were boosted yesterday by a drop in US inventories last week, to 3.7 million barrels, according to a report from the Energy Department, as it cut pessimism on demand estimates.

Analysts had expected a much milder drop of around 700 barrels. On Wednesday, sources with access to API Producers Association data said inventories actually rose slightly.

The data shows that demand is stronger and physical supply tighter than previously estimated, said Ashley Kelty of Panmure Liberum.

But demand in the US and China remains in question and the Organization of the Petroleum Exporting Countries (OPEC) and its allies plan to increase supply from October, Kelty added.

In the past ten days, prices have been supported by increased tension in the Middle East.

Iran has announced its response to the killing of Palestinian Hamas official and leader of the Palestinian delegation to peace talks in the occupied Palestinian Gaza Strip, Ismail Hajnia. Tel Aviv has announced that it will not stop the military operation in Gaza until it destroys Hamas.

"The market is nervously awaiting Iran's response," ANZ Research analysts wrote in a note.

At the beginning of the week, attention was drawn to the announcement by the Libyan National Oil Corporation that it will gradually reduce production in the largest oil field in Libya, with a capacity of 300 barrels per day.

OPEC said a barrel of its members' oil basket rose $1.31 to $76.65 on Wednesday.