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Oil Markets Supported as Libyan Output Under Pressure

COMMODITIES
  • Despite souring equity market sentiment, oil markets traded positively throughout the Friday session, recovering well off Thursday's lows as focus shifted from the China reserve release news yesterday onto production concerns in Libya and the US.
  • Protests in and around Libya's export terminals unsettled markets, particularly after the extended spell of stability for Libyan oil exports.
  • This compounds production concerns with much of output in the Gulf still yet to return to full capacity following Hurricane Ida. This impact was well detailed in this week's DoE crude oil inventories data, which showed a sharp decline in US refinery utilization.
  • Gold and silver trade lower having given up early gains. Both metals failed to find any safe haven bid alongside the equity decline, with the levelling off of USD weakness weighing on prices.

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