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Oil prices stabilize amid halt in Libyan exports, weak demand outlook
(MENAFN) On Monday, oil prices showed little movement, with brent crude futures experiencing a minor decline of 6 cents, or 0.08 percent, settling at USD76.87 per barrel, while West Texas Intermediate (WTI) crude futures rose slightly by 8 cents, or 0.11 percent, reaching USD73.63 per barrel. This stability follows a period of volatility at the end of last week, driven by expectations of an increase in oil production by OPEC+ starting in October, coupled with concerns over weak demand from major economies like China and the United States. The U.S. market was closed for a public holiday on Monday, which contributed to the subdued trading activity.
The oil market has faced recent pressure from a range of factors. Last Friday, Brent crude lost 1.4 percent, and WTI crude fell by 3.1 percent, reflecting ongoing uncertainties. The disruption of oil exports from major Libyan ports has compounded market instability. Libya's oil production remains constrained due to a political impasse over the central bank and oil revenue control, though the Arabian Gulf Oil Company has resumed some output of approximately 120,000 barrels per day to support power generation at the port of Hariga. Meanwhile, OPEC+ is poised to increase production by 180,000 barrels per day starting October as part of a strategy to gradually unwind recent production cuts while continuing to manage reductions through to the end of 2025.
Despite these supply disruptions, both Brent and WTI crude prices have seen declines over the past two months, driven largely by concerns over economic performance in China and the U.S. Pessimism regarding demand growth in China has intensified, particularly following a report showing that Chinese manufacturing activity fell to a six-month low in August. This decline, coupled with decreased factory retail prices and slumping new orders, has further weighed on oil prices.
The oil market has faced recent pressure from a range of factors. Last Friday, Brent crude lost 1.4 percent, and WTI crude fell by 3.1 percent, reflecting ongoing uncertainties. The disruption of oil exports from major Libyan ports has compounded market instability. Libya's oil production remains constrained due to a political impasse over the central bank and oil revenue control, though the Arabian Gulf Oil Company has resumed some output of approximately 120,000 barrels per day to support power generation at the port of Hariga. Meanwhile, OPEC+ is poised to increase production by 180,000 barrels per day starting October as part of a strategy to gradually unwind recent production cuts while continuing to manage reductions through to the end of 2025.
Despite these supply disruptions, both Brent and WTI crude prices have seen declines over the past two months, driven largely by concerns over economic performance in China and the U.S. Pessimism regarding demand growth in China has intensified, particularly following a report showing that Chinese manufacturing activity fell to a six-month low in August. This decline, coupled with decreased factory retail prices and slumping new orders, has further weighed on oil prices.
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