(Bloomberg) — Oil fell for a second day after Saudi Arabia said it was committed to increasing output in December, while factions in Libya reached a deal that would pave the way for some crude output to be withdrawn.
Most Read from Bloomberg
Brent fell below $72 a barrel, a loss of nearly 5% from Tuesday’s close, while West Texas Intermediate was near $68. Saudi Arabia is ready to abandon its unofficial oil price target of $100 a barrel in an effort to regain market share, the Financial Times reported, citing people familiar with the country’s thinking.
Representatives of Libya’s rival eastern and western administrations “started an agreement” on steps to appoint OPEC member states’ central bank chiefs, the United Nations said.
A possible revival in Saudi and Libyan production has seen crude earlier this month fall to its lowest level since 2021, hurt by OPEC+ and China’s poor economic outlook. The International Energy Agency said global oil markets will be oversupplied next year, with or without additional OPEC+ supplies, due to increased production from outside the group.
“There is no room for more OPEC+ oil in the market if cartel oil prices stay close to $80 in 2025,” analysts at A/S Global Risk Management said in a statement. “We assess that the Saudis are trying to put considerable pressure on the quota cheats.”
Meanwhile, the United States, the European Union and major powers in the Middle East have proposed a three-week ceasefire between Israel and Lebanon’s Hezbollah as part of an effort to clear the way for talks. region.
While oil traders have largely shunned China’s previous monetary stimulus measures, President Xi Jinping on Thursday called for the government to provide more fiscal spending, underscoring concerns in Beijing that the country’s growth is slowing.
Click here to get Bloomberg’s Energy Daily newsletter delivered to your inbox.
–With assistance from Julian Lee.
Most read from Bloomberg Businessweek
©2024 Bloomberg LP
2024-09-26 14:15:27