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Oil Is Getting Cheaper On The News From Libya

Oil Is Getting Cheaper On The News From Libya

Oil prices on Friday afternoon after a steady increase moved to a decrease in the news from Libya, according to trading data.

As of 14.38 GMT, the price of November futures for Brent North sea oil mix was down by 0.74%, to $42.98 per barrel, and October futures for WTI-by 0.66%, to $40.7 per barrel.

Prices moved lower amid news that the commander of the Libyan national army, Marshal Khalifa Haftar, announced the resumption of oil production and exports from Libyan ports after a months-long suspension. Most of Libya's oil fields and ports have been closed since January due to the blocking of oil facilities amid military operations in the country.

Earlier on Friday, oil prices rose on the results of the OPEC+ Committee meeting and forecasts. At the end of the first month of the second phase of the OPEC+ deal, the Alliance remained highly committed to the deal. The Committee recommended that the scheme should be extended to compensate for previously undersupplied production until the end of December.

Forecasts of major investment banks on the oil market also restrain the decline in prices. So, Reuters cites a report by Goldman Sachs Bank, according to which by the fourth quarter of 2020, the supply deficit in the oil market will be 3 million barrels per day. The report's authors expect Brent crude to reach $49 by the end of the year and $ 65 by the third quarter of 2021. The Agency also cites a report from analysts at UBS Bank, who forecast a shortage of raw materials and Brent rising in price to $55 by mid-2021.

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