Oil prices halts after recent rally under pressure from Middle East tensions, Libyan lockdown
Date
8/27/2024 5:48:49 AM
(MENAFN) Oil prices have recently experienced a pause in their upward momentum, showing a decline in Asian trading on Tuesday after a significant increase in the previous three sessions. brent crude futures dropped by 32 cents, or 0.39 percent, settling at USD81.11 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell by 36 cents, or 0.46 percent, to USD77.06 per barrel. This decline follows a notable rise of over 7 percent in Brent crude and a 7.6 percent increase in WTI during the preceding sessions.
The recent surge in oil prices was driven by a combination of factors including concerns over potential disruptions in Middle East oil supplies due to escalating military conflict between Israel and Hezbollah, as well as the shutdown of Libyan oil fields. The conflict in the Middle East, a critical region for crude production, has heightened fears of supply interruptions. Additionally, Libya’s political instability led to the closure of oil fields, further fueling supply concerns.
ANZ analysts highlighted that the escalation between Israel and Hezbollah, which has seen increased rocket fire in response to the killing of a senior Hezbollah commander, has heightened market anxiety. The risk of supply disruptions has become more pronounced following Libya’s decision to halt oil production and exports amid escalating political tensions. This situation could potentially impact up to 1.17 million barrels per day of oil output from Libya, underscoring the geopolitical risks facing the oil market.
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