Breaking News: Brent oil prices slide in Asian trade as Chinese demand concerns outweigh supply disruptions in Libya
By Colleen Howe
In today’s trading session, Brent oil prices experienced a decline as worries about a slowing Chinese economy impacting demand overshadowed the effects of a blockade of oil production facilities in Libya. Brent futures dropped by 0.48% to $77.15 a barrel, while U.S. West Texas Intermediate crude saw a slight increase from its previous close.
Analyst Warren Patterson from ING highlighted the ongoing pressure on oil prices due to concerns about Chinese demand, exacerbated by recent economic data showing a decline in new export orders and weak growth in new home prices. Although supply disruptions in Libya have affected production levels, the impact on prices has been limited by the demand side worries.
The United Nations Support Mission in Libya has been working to resolve a dispute over control of the central bank, which led to a blockade of oil production facilities in the country. As a result, oil exports from Libyan ports remain halted, and production levels have significantly decreased.
Despite these supply disruptions, OPEC+ members are planning to increase output in October, which could further affect oil prices depending on market conditions. A recent Reuters survey found that global oil output has reached its lowest level since January, adding to concerns about supply levels.
In addition to the situation in Libya, recent attacks on oil tankers in the Red Sea and a refinery fire in Russia have also contributed to supply concerns in the global oil market. The market remains volatile, with uncertainties surrounding both supply and demand dynamics.