Oil Prices Steady Amid Middle East Tensions

30 Aug 2024 , 10:06 AM

Oil prices remained steady in early trading on Friday as investors balanced supply fears in the Middle East with signs of weakening demand.

Brent crude contracts for October delivery expired on Friday and remained unchanged. The more actively traded contract for November dropped 7 cents, or 0.09%, to $78.75. U.S. WTI crude futures were down 11 cents, or 0.14%, to $75.80.

On Thursday, both contracts finished more than $1 higher due to fears over oil supply.

More than half of Libya’s oil output, or approximately 700,000 barrels per day (bpd), was shut down on Thursday, and shipments were delayed at numerous ports due to a standoff between competing political factions.

Libyan output losses could range between 900,000 and 1 million bpd and last several weeks, according to consulting firm Rapidan Energy Group.

Meanwhile, Iraqi supplies are anticipated to fall after the country exceeded its quota with OPEC+, a source with direct knowledge of the situation told Reuters on Thursday.

Iraq intends to lower its oil output to between 3.85 million and 3.9 million bpd next month.

The Organisation of the Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, plan to progressively phase off voluntary production cutbacks of 2.2 million barrels per day over the period of a year, October 2024 to September 2025.

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