🇱🇾🛢Brent Oil Falls to $70.4 Amid Libyan Production Recovery News

Brent crude oil futures for December delivery have dropped by 1.88%, reaching $70.35 on the ICE exchange. WTI futures for November delivery are also seeing a decline, down 1.76% to $66.96, while December WTI futures have dipped to $66.62 per barrel.

The drop in prices is attributed to the anticipated resumption of oil production and exports from Libya. The governments in the north and east of the country have agreed on a new candidate for the central bank’s chairmanship, making it highly likely that the eastern government in Benghazi will approve the restart of oil fields under its control, potentially boosting output by up to 1 million barrels per day (bpd).

Meanwhile, tensions in the Middle East are escalating as Israel begins a ground operation in Lebanon, raising concerns that other regional powers, particularly Iran, could become involved. However, according to analyst Ashley Kelty of Panmure Gordon, Iran’s rhetoric suggests they have no intention of expanding the conflict beyond their existing proxies in Yemen, Lebanon, and Palestine, as reported by Reuters.

Currently, oil prices may find support from China’s economic stimulus measures aimed at boosting demand, though the effects on economic and energy demand growth are expected to materialize in a few months.

The OPEC+ ministerial monitoring meeting is scheduled for tomorrow, but no significant policy changes are anticipated. The group’s members remain committed to gradually restoring oil production starting December 1, 2024.