Home / Business / Oil prices slide on the potential return of Libyan production; Gulf storm claims from Reuters

Oil prices slide on the potential return of Libyan production; Gulf storm claims from Reuters




© Reuters. FILE PHOTO: Dust blows around a crude oil pump jack and excess gas burns at a drilling rig in the Permian Basin in Loving County

By Jessica Jaganathan

SINGAPORE (Reuters) – Oil prices fell Monday due to potential production return from Libya as rising coronavirus cases also added to concerns about global demand, albeit a tropical storm headed into the U.S. Gulf of Mexico limited losses.

Brent crude () was down 33 cents, or 0.8%, to $ 42.82 a barrel at 0645 GMT, while U.S. crude () was down 38 cents, or 0.9%, to 40 , $ 73 per barrel.

Workers at Libya̵

7;s main Sharara oil field have restarted operations, two engineers working there said after the National Oil Corporation announced a partial lifting of force majeure. But it was not yet clear when production could resume.

“The market cannot afford to hit the market anymore,” ANZ analysts said in a statement Monday, at a time when coronavirus-related curbs have eroded demand.

More than 30.78 million people have been infected with the novel coronavirus and 954,843 have died globally, a Reuters tally shows, crippling travel and business.

“It is difficult to get excited about a recovery in crude oil demand as the virus is on the rise in France, Spain and the UK, coupled with concerns that the US looks poised for at least one more cycle in the fall and winter,” Edward Moya said. senior market analyst at OANDA.

“Even if the energy markets do not see Libyan production return or if the hurricane season subsides, oil prices cannot shake off the prospects for falling demand.”

Meanwhile, Royal Dutch Shell Plc (L 🙂 has shut down oil production and started evacuating workers from a US Gulf of Mexico platform, the company said Saturday.

Tropical Storm Beta is expected to bring 1 foot (30 centimeters) of rain to parts of the Texas and Louisiana coast as the 23rd named storm of this year’s Atlantic hurricane season moves ashore Monday night, the National said. Hurricane Center.

Oil and gas producers resumed their offshore operations over the weekend after being disrupted by Hurricane Sally. About 17% of the U.S. Gulf of Mexico offshore oil production and nearly 13% of production went offline on Saturday in the face of Sally’s waves and winds.

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