WTI Price Holds Position Around $75.50 Due To Rising Fears Of Oil Supply -

WTI Price Holds Position Around $75.50 Due To Rising Fears Of Oil Supply

Aug 30, 2024Jeremy ParkinsonFinance0

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WTI price tends to advance due to rising supply concerns in the Middle East.

Libya’s Oil exports were halted at several ports due to a standoff between rival political factions.

Iraq plans to reduce its Oil output to between 3.85 million and 3.9 million barrels per day beginning next month.

The West Texas Intermediate (WTI) Oil price continues to rise, trading around $75.50 per barrel during Friday’s Asian session. This increase is driven by supply concerns in the Middle East. Worries about reduced Libyan Oil supplies and Iraq’s plans to curb production are contributing to these supply fears, which in turn are bolstering Oil prices.On Thursday, over half of Libya’s Oil production, roughly 700,000 barrels per day (bpd), was offline, and exports were suspended at several ports due to a standoff between rival political factions. According to Rapidan Energy Group, as reported by Reuters, Libya’s production losses could escalate to between 900,000 and 1 million bpd and potentially persist for several weeks.In addition, Iraqi Oil supplies are anticipated to decline as the country has exceeded its quota set by the Organization of the Petroleum Exporting Countries (OPEC) and its allies. According to a source with direct knowledge, Iraq plans to cut its Oil output to between 3.85 million and 3.9 million barrels per day (bpd) starting next month, as reported by Reuters on Thursday.Nevertheless, the rise in WTI prices might be limited by weakened global demand for crude Oil. Persistent concerns about China’s economy, the world’s largest Oil importer, continue to dampen Oil demand. On the other hand, the US economy has shown modest growth, which has positively impacted investor confidence. In the second quarter, the US Gross Domestic Product (GDP) grew at an annualized rate of 3.0%, surpassing both the forecasted and previous growth rate of 2.8%.WTI prices may find support from the growing likelihood of an interest rate cut by the Federal Reserve starting in September. On Thursday, Federal Reserve Atlanta President Raphael Bostic, known for his hawkish stance on the Federal Open Market Committee (FOMC), suggested it might be “time to move” on rate cuts. This indication comes in response to further cooling inflation and a higher-than-expected unemployment rate.More By This Author:Australian Dollar Remains Stronger After A Weak Retail Sales Report USD/CAD Remains Below 1.3500 Due To Higher Oil Prices EUR/GBP Remains Above 0.8450, Potentially Reinforced By German Data