Oil End of Day Summary: Crude Surges on Libya Supply Risk

WTI has surged today after the Libya’s Benghazi-based government announced that it will halt production at oil fields under its control.

• WTI OCT 24 up 3% at 77.08$/bbl
• RES 1: $78.54 - High Aug 12 and key resistance
• Libya’s Eastern-based government announced a “force majeure” at all fields, terminals and oil facilities, Bloomberg said. The move is in response to the rival Tripoli-based government’s attempt to take control of the Libyan central bank.
• A blockade by Libya’s Eastern-based government could cut output to around 200k b/d, down from 1.15m b/d in July, according to an updated estimate by Stratfor.
• Exchanges of rocket fire between Israel and Hezbollah over the weekend and renewed concerns of an expanded conflict have also been supporting oil prices during the morning session.
• Efficiency gains which helped drive the US’ surprise rise in crude output in 2023 have returned, helping Shale producers revise up their 2024 targets, according to Argus.
• China’s state-owned Sinopec aims to lower its crude throughput to 5.03m b/d in H2 2024, according to Platts.
• Kazakhstan’s PM and OPEC’s Secretary General discussed the current situation on the international market for oil and Kazakhstan reaffirmed its cooperation within OPEC+, Interfax reported.
• Pemex’s total processing was up to 1.01m b/d of crude in July, up 145k b/d on the month, according to Reuters.
• UKMTO said that it received a report of an incident 61nm southeast of Al Mukha, Yemen.