Brent crude fell 4.3 percent to $74.17, its lowest since December, while West Texas Intermediate crude lost 4 percent to $70.64, its lowest since January.
Oil prices sank more than 3% on Tuesday after Bloomberg News reported that it was A deal to resolve a dispute that has halted Libyan production and exports is imminentwhich brought barrel values to their lowest level since the beginning of the yearReuters reported.
The news that it is possible that more crude oil supply returns to the market It came as prices had already fallen on belief that demand was being undermined by slow economic growth in China, the world’s biggest oil importer.
Brent crude futures fell 4.3 percent to $74.17 a barrel, their lowest since December. West Texas Intermediate crude futures, which were not traded on Monday due to the U.S. Labor Day holiday, lost 4% to $70.64an apartment since January.
Oil: Libyan deal close
UBS analyst Giovanni Staunovo said the sell-off was linked to the Bloomberg report, which cited the Libyan central banker at the center of the controversy saying that There were “strong” indications that the political factions involved were close to an agreement.
Libyan oil exports at major ports halted on Monday and output fell across the country, six engineers told Reuters, amid ongoing fighting between rival political factions over control of the central bank and oil revenues.
Libya’s National Oil Corporation (NOC) has declared force majeure at its El Feel oil field as of September 2.. Total production had plummeted to just over 591,000 barrels per day (bpd) as of August 28 from nearly 959,000 bpd on August 26, NOC said. Output was about 1.28 million bpd on July 20, the company said.
petroleum energy fuels
Reuters
Other data that also complicates the oil outlook
On Monday, China reported that new export orders fell in July for the first time in eight months and that new home prices rose in August at their weakest pace this year.
Some supply is set to return to the market as eight OPEC members and their allies, known as OPEC+are planning to increase production by 180,000 bpd in October. According to industry sources, the plan is likely to go ahead despite fears over demand.
Source: Ambito
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