Oil Prices Rise as Libya’s Export Halt Offsets OPEC+ Boost

Eight OPEC+ members are expected to raise output by 180,000 bpd in October as part of a plan to begin unwinding their latest supply cut.

Written by: Ignacio Teson • Tuesday, September 3, 2024 • 1 min read

• Last updated: Tuesday, September 3, 2024

Oil prices climbed on Monday, recovering some of last week’s losses, as Libya’s crude exports remained suspended and concerns over increased OPEC+ production in October eased.

Brent crude futures gained 59 cents, or 0.77%, to $77.52 a barrel at 17:31 GMT, while U.S. West Texas Intermediate (WTI) rose 47 cents, or 0.65%, to $74.03 a barrel. Trading volumes were low due to a U.S. market holiday on Monday. On Friday, Brent and WTI had lost 1.4% and 3.1%, respectively.

Oil exports at Libya’s main ports were halted on Monday, and production was reduced nationwide, six engineers told Reuters, as rival political factions continued their standoff over control of the central bank and oil revenues. Libya’s National Oil Corporation (NOC) also declared force majeure at the El Feel oil field starting September 2.

On Sunday, Libya’s Arabian Gulf Oil Company resumed production of around 120,000 barrels per day (bpd) to supply a power plant at the Hariga port.

USOIL

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, plan to proceed with their scheduled crude production increases starting in October, according to six sources within the group.

Eight OPEC+ members are expected to raise output by 180,000 bpd in October as part of a plan to begin unwinding their latest supply cut of 2.2 million bpd, while maintaining other cuts through the end of 2025.

Despite recent supply disruptions in Libya and supply risks related to the conflict in the Middle East, both Brent and WTI have posted losses for two consecutive months, as concerns over demand in the U.S. and China have outweighed these factors.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.