Crude Oil Falls Below $70 A Barrel, Wiping Out Gain For The Year

(MENAFN- Yolo Wire) The price of West Texas Intermediate (WTI) crude %Oil , the U.S. benchmark, has dropped below $70 U.S. a barrel, wiping out its gain for this year.

WTI fell as low as $69 U.S. per barrel in Asian trading, its lowest level since last December, before recovering to trade at just over $70 U.S. a barrel.

Brent crude oil, the international standard, fell as much as 5% in Asian trading to land at $74 U.S. a barrel, also its lowest level since December 2023.

The decline in oil prices comes on news that a deal to revive Libya’s crude output is imminent, reviving concerns about a supply glut amid weak global demand for energy products.

Demand is particularly weak in China, the world’s biggest importer of crude oil, say energy analysts.

With more than half a million barrels of Libyan crude coming to market this week, the focus now turns to global oil consumption and demand.

The market is also preparing for OPEC+ to gradually restore production, starting with 180,000 barrels of daily supplies – though some media reports state that the cartel might hold off on increasing production in the near-term.

Libya’s oil production had been shutdown amid escalating political turmoil in the North African nation. The shutdown in crude production now looks like it will end in coming days.

Concerns about demand in China have grown more pronounced after economic data showed the country of 1.4 billion people is mired in an ongoing slowdown.

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