Crude oil futures experienced further declines during Asian trading hours on Wednesday, reaching new yearly lows amid persistent concerns about global economic growth and recent developments in Libya.
Brent Crude: The front-month November 2024 ICE Brent futures were trading at $72.80 per barrel as of 07:35 GMT, down from Tuesday’s settle of $73.75 per barrel.
WTI Crude: October 2024 NYMEX WTI futures were at $69.34 per barrel, compared to Tuesday’s settle of $70.34 per barrel.
Oil prices have been under pressure since the beginning of the week, influenced by worries over economic growth in China, the US, and Europe. Additionally, news that Libya’s rival factions are moving towards a resolution regarding the central bank dispute further weighed on prices.
Libya’s central bank governor, Sadiq Al-Kabir, indicated on Tuesday that there are strong signs of a potential agreement among the political factions to resolve the deadlock. This development could lead to a swift increase in Libyan oil production, which has recently fallen to between 300,000 to 450,000 barrels per day.
Analysts noted that a rebound in Libyan output might prompt OPEC+ to reconsider its production plans for October. Investors are awaiting a decision from the group, which could be delayed until the weekend.
Refined products also faced significant selling pressure this week. Notably, US RBOB gasoline prices dropped around 5% in the previous session, hitting new 2024 lows below $2 per gallon.
US inventory data from the API and EIA has been delayed by 24 hours this week due to Monday’s holiday.
