Global Oil Prices Dip as Market Outlook Overshadows Middle East Tensions
As the fourth quarter gets underway, oil prices have taken a hit, despite ongoing geopolitical risks in the Middle East. The Brent crude benchmark hovered around $71 a barrel, following a modest gain on Monday. The recent deal between Libya’s rival governments to resolve leadership issues at the central bank is expected to boost output, but tensions remain high in the region, with Israel launching ground raids in Lebanon.
The global oil market has been plagued by a bearish outlook, with prices plummeting nearly 17% in the previous quarter and remaining lower year-to-date. Expectations of increased production from OPEC+ and a slowdown in China’s economy have weighed heavily on prices.
According to Ole Hansen, head of commodities strategy at Saxo Bank, the current weakness in oil prices is driven by traders trying to capitalize on geopolitical events, rather than focusing on tangible production increases, such as the one expected from Libya.
OPEC+ is set to hold an online meeting on Wednesday to assess the market and prepare for a planned increase in output starting in December. Russian Deputy Prime Minister Alexander Novak has confirmed that the alliance is not considering any new proposals at this time.
Leave a Reply