Oil dropped over 2% as Libya supply concerns eased, China demand worries lingered
The market responded to Libya's agreement on appointing a central bank governor, a key step toward resolving the power struggle over oil revenues that had slashed production and exports.
Oil prices fell sharply on Wednesday, dropping over 2%, as concerns about supply disruptions from Libya began to ease. This decline comes despite China’s latest stimulus measures remains sceptical.
Brent crude dropped $1.71, settling at $73.46/barrel.
WTI slipped by $1.87, closing at $69.69/barrel.
The market responded to Libya's agreement on appointing a central bank governor, a key step toward resolving the power struggle over oil revenues that had slashed production and exports. While this may stabilize global supply, oil prices remain under pressure as sluggish demand from China raises questions about the broader market outlook.
Meanwhile, falling crude inventories in the US and rising tensions in the Middle East provided some support to oil prices.
Written by: Muhammad Hafiz