Oil prices pop as Libyan oil exports remained halted
2024.09.02 18:47
oil futures opened modestly higher after recording three consecutive weeks of losses. Oil prices have been under pressure lately, influenced by concerns over a potential slowdown in demand from China, a major importer, coupled with the possibility of increased supply from leading producers.
By 18:31 EST (22:31 GMT), crude oil futures were up 0.2% at $73.70, while the contract was up 0.32% at $77.26.
Oil exports from key Libyan ports were suspended on Monday, and production was reduced nationwide due to an ongoing dispute between rival political groups over the management of the central bank and oil revenue.
This disruption led Libya’s National Oil Corp. (NOC) to declare force majeure on the El Feel oil field, effective since September 2.
Despite these disruptions, experts suggest that the impact may be limited. Libya’s Arabian Gulf Oil Company managed to resume production at approximately 120,000 barrels per day on Sunday, aimed at powering the Hariga port’s power plant.
Further influencing the oil markets, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are reportedly planning to continue with their scheduled output increases starting in October, Reuters reported.
