September 03, 2024 (MLN): Oil steadied on Tuesday as concerns over China’s gloomy economic outlook offset supply disruptions in Libya.
Brent crude traded near $77 a barrel after jumping 0.8% yesterday. While West Texas Intermediate crude (WTI) was at $73.65 per barrel.
China’s remaining growth engines are showing signs of sputtering as a property crisis continues to drag on the economy, with an official growth target looking out of reach, Bloomberg reported.
In Libya, the state oil firm declared force majeure at the El-Feel field, with an escalating power struggle already halving the nation’s output.
The disruptions may give OPEC+ the space to restore some production next quarter, as planned.
Oil has wiped out nearly all of this year’s gains over the past couple of months as economic concerns in key consumers — including China and the US — and ample supply weighed on sentiment.
The market is also bracing for the additional barrels from OPEC+.
“Libyan supply outages may offer some reprieve for prices, but that will be pitted against upcoming supply additions from OPEC+ from October,” said Yeap Jun Rong, a market strategist at IG Asia Pte Ltd. in Singapore. “Appetite for risk-taking has been limited.”
The US, meanwhile, is laying the groundwork for new sanctions on Venezuelan government officials in response to Nicolás Maduro’s disputed reelection in July, according to Bloomberg.
The measures target key leaders the US says collaborated with Maduro to undermine the July 28 vote.
