Oil prices fall on supply disruptions in Libya, Nigeria

July 14, 2023 (MLN): Oil prices fell on Friday after showing upward signals earlier in the trading session amid supply disruptions in Libya and Nigeria on top of easing U.S. inflation.

Brent crude is currently trading at $80.85 per barrel, down by 0.60% on the day.

While West Texas Intermediate crude (WTI) is trading at $76.49 per barrel, down by 0.65% on the day.

A day before, oil prices breached the $80 mark, as the U.S. consumer price index (CPI) for the month of June 2023 eased to 3% YoY, below analysts’ estimates of 3.1%.

Moreover, on Thursday, a number of oil fields in Libya closed in protest against the kidnapping of a former minister.

Separately, Shell has suspended loadings of Nigeria's Forcados crude oil due to a potential leak at a terminal, Reuters reported.

As per ANZ Research, the protests in Libya could reduce oil output by 250,000 barrels per day, increasing supply disruptions.

"Crude prices are getting a boost from expectations that the oil market will get very tight as Libya and Nigeria deal with disruptions, also while Russian crude exports finally decline," said Edward Moya, an analyst at OANDA.

Earlier this month, Saudi Arabia and Russia, the world's biggest oil exporters, deepened oil cuts to support prices.

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday upgraded its oil demand forecast for 2023, adding it expected demand to grow 2.2% in 2024.

The National Bank of Australia said in a research note on Friday it expected the OPEC forecast, if realized, "to deliver oil prices well above $100/barrel", adding that the softening value of the U.S. dollar continued to boost commodity prices.

Copyright Mettis Link News