Crude oil prices plunge as prospective Libyan deal fuels supply concerns
The sharp drop came amid expectations of an imminent agreement between Libyan factions to ramp up oil production, adding further pressure to a market anxious about OPEC+’s plan to increase output in the coming weeks.
Crude oil prices tumbled to their lowest levels since December 2023 on Tuesday, September 3, as news of a potential deal to restore Libya's output rattled markets already grappling with weak global demand.
Brent crude sank by $3.77, or 4.9%, to close at $73.75/barrel
WTI plunged $3.21, or 4.4%, to $70.34/barrel.
The sharp drop came amid expectations of an imminent agreement between Libyan factions to ramp up oil production, adding further pressure to a market anxious about OPEC+’s plan to increase output in the coming weeks. The news intensified concerns over the precariousness of demand in key economies like China and the United States, where fears of an economic slowdown have already weighed heavily on market sentiment for months.
Written by: Rochelle Nguyen