Oil Summary at European Close: Crude Falls on Libya Headlines

Crude has faced further downward pressure today on headlines suggesting a resolution to the ongoing dispute in Libya may be nearing. This could allow a restart to the country’s production

• Brent NOV 24 down -4.3% at 74.15$/bbl
• WTI OCT 24 down -3.9% at 70.7$/bbl
• The Libyan central banker in the middle of the current power struggle says there are “strong” indications political factions are nearing an agreement to overcome the current deadlock according to Bloomberg reports.
• Libya’s NOC declared a force majeure on key oil field El-Feel amid Sep. 2, a widening shutdown of production, Bloomberg said.
• Libya National Oil Corp (NOC) declared force majeure at its 70,000 bpd El Feel oil field from September 2 it said on Monday.
• Russia’s seaborne oil flows edged down to the lowest in a nearly a month due to likely maintenance at the offshore Arctic Prirazlomnoye field, according to Bloomberg.
• Kazakhstan’s Tengiz oil field has completed planned maintenance, according to Tengizchevroil.
• Prices of sweet or low-sulphur crudes in the Mediterranean are rising with CPC Blend now at a 4-year high, following the shutdown of Libyan oil production, Bloomberg said.
• Pipeline that traditionally carry Canadian crude to the US are cutting rates and looking to ship different grades of crude oil due to rising competition from the expanded 890k b/d Trans Mountain Pipeline, Reuters said.
• 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.
• Setbacks from attacks and corrosion at oilfields in Ecuador’s eastern Amazon jungle are curbing crude output, Petroecuador said in a statement Sep. 2, cited by Platts.