Oil Settles Near 14-Month Low
WTI crude futures settled at $69.1 per barrel on Thursday, remaining near a 14-month low, as concerns over slowing demand in the U.S. and China, combined with the potential for increased oil supply from Libya, outweighed a larger-than-expected drop in U.S. crude inventories.
The U.S. Energy Information Administration reported a 6.9 million barrel reduction in stockpiles for the week ending August 30, well above forecasts. At the same time, OPEC+ delayed planned production hikes for October and November, which analysts at Jefferies estimate will tighten fourth-quarter supply by 100,000-200,000 barrels per day.
In Libya, despite political tensions, tankers began loading crude again. Meanwhile, positive U.S. economic data calmed fears over the Federal Reserve's potential interest rate cuts, with many anticipating a reduction at its September meeting. Lower rates could help spur economic growth and boost oil demand.
Source : Trading Economics
