Brent crude is trading below $42 per barrel again

Oil quotations declined on Monday amid continuing uncertainty about the outlook for demand amid signals of increased production in Libya, Interfax reports.

November futures for Brent fell in price on the London ICE Futures by $0.28 (0.67%) to $41.64 per barrel. On Friday, Brent lost $0.02 (0.05%) in price.

By this time, November futures for WTI got cheaper on the New York Mercantile Exchange (NYMEX) by $0.32 (0.8%) to $39.93. In the previous session, the contract lost $0.06 (0.2%).

Last week, Brent fell by 2.9%, WTI – 2.6%.

The potential for a rise in the price of oil in the fourth quarter is limited as the pace of global economic recovery slows due to renewed outbreak of COVID-19 and the reintroduction of certain quarantine measures, Vitol board member Chris Bake said at a Gulf Intelligence conference in Dubai.

Meanwhile, Libya has almost tripled its oil production – to 250,000 barrels per day (bpd) – after lifting the blockade from a number of oil fields, Bloomberg reported, citing informed sources. According to them, ships are assembled in local ports and loaded with oil from storage facilities, which frees up reserve capacities in anticipation of further growth in production.

Major countries are considering returning restrictions on tourism, and this is the main catalyst for lowering oil prices.

Data from US oilfield services company Baker Hughes released last Friday indicated an increase in US drilling activity.

 

Tags: oil, USA, coronavirus, quarantine, Brent, WTI, COVID-19, oil reserves, crisis, economy

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