OIL: Mid-Day Oil Summary: Crude Extends Fall

Crude extends the recent decline with the risk of a market surplus due to weak demand and the expectation of additional supply from OPEC+ from Q4 onwards weighing on both futures and spreads.

• Brent NOV 24 down 2.4% at 75.65$/bbl
• WTI OCT 24 down 1.7% at 72.27$/bbl
• Brent NOV 24-DEC 24 down 0.16$/bbl at 0.63$/bbl
• WTI OCT 24-NOV 24 down 0.04$/bbl at 0.86$/bbl
• Libya’s NOC declared a force majeure on key oil field El-Feel amid a widening shutdown of production, Bloomberg said. Oil exports at major Libyan ports were halted Sep. 2 with production curtailed across the country, six engineers told Reuters.
• The US is putting together further sanctions on Venezuela following its disputed election results and arrest warrant for an opposition leader. The US had eased oil and gas sanctions last year on the condition of free and fair elections but had reinstated them after popular figures were not allowed to run as candidates.
• Libya National Oil Corp (NOC) declared force majeure at its 70,000 bpd El Feel oil field from September 2 it said on Monday.
• The Brent crude price outlook looks bearish and set to average $72.50/bbl next year amid soft demand, even before considering looming oversupply dynamics in 2025, according to RBC.