Oil Prices Slide on Weak Demand

3 Sep 2024 , 11:18 AM

Brent oil prices fell in Asian trade on Tuesday, as concerns about China’s slowing economy reducing demand overshadowed the impact of a blockade of oil production facilities in Libya.

Brent crude futures were down 37 cents, or 0.48%, to $77.15 a barrel. U.S. West Texas Intermediate crude rose 28 cents from its Friday close of $73.55.

The United Nations Support Mission in Libya said it held negotiations on Monday to address a dispute over control of the central bank, which resulted in a blockade of the country’s most valuable commodity, reducing oil production to less than half of its normal level.

Rival factions reached an agreement and planned to sign it on Tuesday, the UN stated without providing more information.

Oil shipments from Libyan ports were blocked on Monday, with output down, according to six engineers, who talked to Reuters.

Libya’s National Oil Corp (NOC) announced on Monday that it had declared force majeure on its El Feel oil field effective September 2.

Two oil tankers were assaulted in the Red Sea off Yemen on Monday, exacerbating supply concerns but causing no substantial damage. The Iranian-backed Houthis claimed responsibility.

In addition, one of the units at Russia’s Gazpromneft Moscow refinery was shut down for repairs. A fire broke out on Sunday following a drone hit at the factory, which processed 11.6 million tonnes of crude oil last year.

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