Oil production in Libya to resume, US oil production in the Gulf of Mexico normalised – Commerzbank
|One reason for the price weakness last week was the agreement reached by the conflict parties in Libya in the dispute over the leadership of the central bank, Commerzbank’s commodity analyst Carsten Fritsch notes.
Additional supply from Libya is likely to weigh on oil prices
“The agreement was reached by the conflict parties in Libya in the dispute over the leadership of the central bank. This had led to an interruption in oil production in the east of the country, causing nationwide oil production to fall from 1.2 million to less than 450 thousand barrels per day.”
“Yesterday, the parliament based in eastern Libya approved the appointment of the new central bank governor, which should enable oil production there to be ramped up. According to people familiar with the matter, this is expected to begin today. The additional supply from Libya is likely to weigh on oil prices.”
“A similar observation can be made for US oil production in the Gulf of Mexico. Hurricane Helene curtailed production there for several days last week. According to the relevant authority, the outages on Thursday amounted to about a quarter of US production in the Gulf of Mexico. By Sunday, production had almost returned to normal levels.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.