Global Shifts In Oil Production Impact Prices Amid Geopolitical Tensions
(MENAFN- The Rio Times) Oil prices climbed at the start of September, driven by investors aiming to bounce back from recent losses. They closely monitor escalating tensions in the Middle East and shifts in oil supply.
For November delivery, brent crude oil, which serves as a global benchmark, saw a 0.77% increase to $77.52 per barrel at the Intercontinental Exchange in London.
Concurrently, West Texas Intermediate (WTI) oil for October ascended by 0.65% to $74.03 per barrel, traded electronically at the New York Mercantile Exchange, despite the closure of U.S. markets.
This rise in oil prices reflects broader global issues. Notably, OPEC plans to increase production by 180,000 barrels per day starting October.
This strategy aims to gradually eliminate previous cuts that reduced supply by 2.2 million barrels per day, as reported by Reuters. These adjustments are scheduled to continue until the end of 2025.
In Libya, oil production resumed at the beginning of the month after a halt. The Arabian Gulf Oil Company initiated production at 120,000 barrels per day to meet local demand, although exports are still paused.
This restart primarily aims to provide fuel and electricity for local use, as engineers informed Reuters.
Impact of Geopolitical Tensions on Oil Markets
Earlier disruptions in Libyan oil output were due to a conflict between the eastern government in Benghazi and the western government in Tripoli, recognized internationally, affecting both production and export levels.
Additionally, ongoing conflicts in the Middle East, especially between Israel and Gaza, influence the oil markets.
Recent tensions intensified when Israel retrieved the bodies of six hostages from a tunnel in Gaza. This development led to protests and planned retaliatory attacks due to the failed rescue operation.
Market sensitivity to oil prices also includes concerns over China's demand, keeping investors vigilant to shifts that could sway global oil supply and prices.
These developments emphasize the link between global events and energy resources. They highlight how geopolitical stability and economic policies are crucial in shaping the world economy.
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