Oil's Slide Puts Focus on OPEC+ Production Plan and Weak Demand
Oil pushed lower after a loss of almost 5% on Tuesday as the possible easing of political unrest in Libya shifted focus back to concerns over global demand and OPEC+'s plan to boost production from October.
Brent traded near $74 a barrel and West Texas Intermediate dropped below $70 for the first time since early January. A Libyan central banker said a deal appeared imminent to resolve a dispute between the rival governments in the strife-torn North African nation, which could spur the resumption of oil output.
There was some speculation that the turmoil in Libya could give OPEC+ space to return more barrels as planned, but a resolution will likely make it harder for the alliance to boost output without hitting prices. The group has said previously that it could pause or reverse hikes if necessary.
Oil has now wiped out all of this year's gains on worries about the economic outlook in China ââ-š¬Ã¢â‚¬ the world's biggest crude importer ââ-š¬Ã¢â‚¬ and ample supply from outside of the Organization of the Petroleum Exporting Countries. Some of the rout on Tuesday may have been caused by increasingly bearish trend-following algorithmic traders.
Brent for November settlement fell 0.4% to $73.45 a barrel at 8:40 a.m. in Singapore. WTI for October delivery was 0.5% lower at $70.01 a barrel.
Source : Bloomberg
