On Friday, crude oil prices recovered from its two-day decline as Libya confirmed significant production disruptions, lowering fuel outputs.
West Texas Intermediate crude futures for October delivery rose by 0.12% to $76.00 per barrel. Also, Brent oil contracts for November shipments gained by 0.16% to $78.95 a barrel on August 30’s Asian afternoon session.
Based on an OPEC member, production in Libya dropped by 1.50 million barrels over the past three days, equating to a $120.00 million loss.
According to the consulting firm Rapidan Energy, Libya’s production outlooks for several weeks will be around 900,000 to one million barrels per day (bpd).
Experts said that many factors serve as tailwinds for the fuel. These include the plummeting Libyan crude oil production, higher risks of a more severe Middle Eastern war, and an eight-month low in oil storage.
Moreover, the eastern government of Benghazi warned to close all oil production and exports. This came amid the United Nations-backed western government Tripoli plans to replace the OPEC member’s central bank head.
On the other hand, sources reported that Iraq aims to lower oil supplies from 4.25 million bpd in July to 3.90 million bpd in September. They added that Iraq had exceeded its four million bpd quota under an agreement with OPEC and its allies.
Asian Oil Deliveries Shows Modest Crude Recovery
Asian crude oil imports increased in August from the two-year dip in July as significant importers brought in more barrels.
According to data from oil research, total imports are forecasted to hit 26.74 million bpd, higher than July’s 24.56 million bpd.
Furthermore, the significant growth in August’s recovery was driven by China’s 1.05 million bpd rise. LSEG’s estimates stated that the country’s oil arrivals are at 11.02 million bpd. Moreover, Chinese refineries tend to boost crude purchases in the third quarter to build sufficient stockpiles of refined products for the winter demand.
