Oil prices on the New York Mercantile Exchange are continuing to fall after a “solid” sell-off during the previous session, down nearly 5 percent. Markets are growing worried about a possible oversupply of the commodity at a time when demand for fuels is weakening, brokers said.
A barrel of West Texas Intermediate crude for delivery at X is trading at $69.94 on the NYMEX in New York, down 0.57 percent from such low oil prices in USA not recorded since January 2024
Brent on ICE on November is valued at USD 73.40 per barrel, down 0.47%.
Will the crisis in Libya be resolved?
In recent days, investors have been closely monitoring the situation in Libyawhich is one of OPEC's oil suppliers, and analyzed OPEC+ plans to increase supplies of oil from this group from October.
Libya is in the midst of a political crisis sparked by a power struggle in the OPEC member state. Libyan authorities in the east of the country have suspended production and exports of Libyan oil in a dispute with rival authorities from the east, recognized by the West. The “eastern” and “western” governments in Libya remain at an impasse over the Libyan central bank, which is the custodian of billions of dollars in oil export revenues. However, there are signs in the markets that an agreement that could resolve the dispute and restore Libyan oil supplies seems close to being concluded.
Libya's central bank governor, Sadiq Al-Kahir, who was previously removed from his post by Libya's “Western” authorities, said on Tuesday there were “strong” signs that Libya's warring political factions were getting closer to reaching an agreement to overcome the current impasse.
Al-Kabir and other Libyan central bank employees had previously fled the country due to threats from armed groups.
Al-Kabir found refuge in Istanbul. “If they sign an agreement today, I will return tomorrow,” he announced.
More oil on the market
Meanwhile, investors are assessing OPEC+'s plans to restore larger oil supplies to global markets from this group of producers from October.
The OPEC+ alliance is to supply markets with 180,000 barrels per day more oil from October, gradually returning production to the markets that has been curtailed since 2022.
There are currently no signs that OPEC+ may postpone its production growth plans, say representatives of this group of oil producers.
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