Oil prices recovered with Brent crude gaining more than $1 after its biggest one-day drop in two years in the previous session. Oil prices were pressured on Wednesday following news that Libya could resume pol exports, while the present escalating US-China trade tensions have raised concerns about the demand.
The Libyan’s National Oil Corp (NOC) has officially announced that 4 export terminals were getting ready to being reactivated and could allow the return to as much as 850 K bpd of oil into the markets, which could end a standoff that had shut down the majority of Libya’s oil output.
The International Energy Agency(IEA), which is a Paris-based organization has announced in its latest forecast that global crude output has been stretched to the limit, with “no sign of higher production from elsewhere that might ease fears of market tightness.”
OPEC and Russia’s crude production increased to a 4 month high in June up 180K bpd to 31.87 M bpd according to the IEA. Moreover, the IEA also lowered its forecast for non-OPEC oil supply by 70 K bpd to 60.2 M bpd.
Crude Oil prices struggled a bit during the trading session as it appeared that some countries are starting to abandon Iranian Crude, which surprisingly should raise demand issues.
New York-traded WTI crude futures trade at $71.00 a barrel. Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S. trades at $74.90 a barrel.