Labour is now the largest single party in Oxford's hung city council
There has been no change in council control in Oxfordshire after votes were counted in the 2008 local elections.
Oxford City Council, where half the seats were contested, remains under no overall control but with the Lib Dems losing to Labour as the largest party.
The Tories lost their only two seats. Labour now has 23 seats, Lib Dems 16, the Greens seven and the Independent Working Class Association has two.
The Conservatives retained West Oxfordshire and Cherwell.
In West Oxfordshire, the Tories gained four seats, leaving them with 40 out of 49 seats.
They also gained two seats in Cherwell from Labour, taking them to 44 seats out of 50.
The Lib Dem leader of Oxford City Council, John Goddard, said it was a "disappointing" result for the party.
"We started the night with 15 seats, we've ended up with 16 seats.
"We've made two gains, one from Conservatives, one from Greens, but we've lost one to Labour so we've got a net gain of one.
"But we are not the largest party and it's that that's disappointing."
Paul Sargent, one of the ousted Conservative city councillors, said the party would return to the council.
"There are a number of things that this council doesn't do right at all at the moment and we will be holding them to account and scrutinising them from the sidelines," he said.
"In two years time you'll find us taking seats, I promise you."
Meanwhile the people of Henley are waiting to see if they will lose their MP of seven years if Boris Johnson is elected mayor of London.