Oil Futures Rise Slightly After Three Weeks of Losses
Oil futures opened modestly higher after recording three consecutive weeks of losses. Concerns over a potential slowdown in demand from China and the possibility of increased supply from leading producers have been putting pressure on oil prices.
By 18:31 EST (22:31 GMT), crude oil futures were up 0.2% at $73.70, while the Brent contract was up 0.32% at $77.26.
The suspension of oil exports from key Libyan ports and a nationwide production reduction due to a dispute over the management of the central bank and oil revenue led Libya’s National Oil Corp. (NOC) to declare force majeure on the El Feel oil field.
Despite these disruptions, experts believe that the impact may be limited. Libya’s Arabian Gulf Oil Company managed to resume production at approximately 120,000 barrels per day, focusing on powering the Hariga port’s power plant.
Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) are reportedly planning to continue their scheduled output increases starting in October, as reported by Reuters.
In conclusion, the slight rise in oil futures comes after weeks of losses driven by concerns over demand and supply dynamics. The ongoing disruptions in Libya and the upcoming output increases by OPEC+ are factors to watch for potential impacts on oil prices in the near future. Investors should stay informed and monitor these developments to make informed decisions regarding their investments in the oil market.