Oil futures rose on Thursday, recovering losses after two days of losses, as deepening disruptions to Libya and plans to cut production in Iraq raised concerns about a squeeze on global supplies.

More than half of Libya’s oil production is out of exploit, and Exports were suspended at several ports due to the standoff between rival political factions, Reuters reported.

“While it is not clear how much export Libya will cut, some analysts say 500-900 thousand barrels per day could be affected as internal disputes over control of their banking system remain a concern for traders,” said Dennis Kissler of BOK Financial, according to Dow Jones, adding that “technically, October WTI crude remains bearish with near-term support at 73.82.”

Offline production in Libya is at the level direct risk of reaching 1 million barrels per dayAline Carnizelo of Frontier Commodities told Reuters, adding that a gradual economic recovery was unlikely before October and that even after the lockdowns were lifted, investors had to accept that Libya would be an uncertain situation for markets.

Reuters also reported that Iraq plans to cut oil production in September as part of a plan to compensate for exceeding the production limit agreed with OPEC+.

Iraq, which produced 4.25 million barrels per day in July, is reportedly set to cut production to 3.8-3.9 million barrels per day next month, compared with an agreed limit of 4 million barrels per day.

In addition, US GDP in the second quarter was revised up to 3% from 2.8% previously, which Mizuho’s Robert Yawger said “has sparked a bull run across multiple asset classes today,” with oil “seemingly riding a ‘rising tide lifts all boats’ wave.”

Yawger also noted that there is a constant risk of escalation between Israel and Hezbollah or Iran.

Nymex (CL1:COM) Crude Oil Monthly Delivery Closed for October +1.8% to USD 75.91/bbl, and the October Brent crude price (CO1:COM) was settled +1.6% to USD 79.94/bbl, breaking the two-day decline in both indices.

The October Nymex natural gas contract (NG1:COM) also ended +1.9% to $2.137/MMBtu, after the Energy Information Administration said underground storage resources increased by 35 billion cubic feet last week, slightly below expectations.

ETFs: (NYSEARCA: USE), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI), (UNG), (COOKING), (KOLD), (UNL), (FCG)

A long-term Libyan shutdown would give OPEC+ more leeway to boost supply in Q4 as planned, but a short-term disruption would force the group to make a decision much harder– ING strategists say.

ING said OPEC+ would be reluctant to add supply to the market if demand problems persisted.