Stable oil prices defy Middle East turmoil, Libya poised for rebound
Crude oil enters the fourth quarter with stable prices. The Israeli army has launched a ground operation in Lebanon. Despite rising geopolitical risks in the Middle East, oil from Libya may soon return to the markets.
7:12 AM EDT, October 1, 2024
On the NYMEX exchange in New York, a barrel of West Texas Intermediate (WTI) oil for November delivery costs $68.27, up 0.15%.
Brent oil on the ICE exchange in London for November delivery is priced at $71.79 per barrel, up 0.13%.
Investors are assessing risks associated with the Middle East after the killing last week of Hezbollah’s Shiite terrorist organization leader, Hasan Nasrallah, by Israel. Now, the Israeli army has begun ground operations against Hezbollah targets in southern Lebanon. These operations are supported by air and artillery and are being conducted in parallel with fighting in the Gaza Strip and on other fronts.
According to the Beirut government’s estimates, more than a thousand people have been killed in the attacks over the past two weeks, and over one million Lebanese have had to leave their homes.
More oil may flow from Libya
Meanwhile, more crude oil may reach the fuel markets from Libya after two rival “governments” in this North African country reached a compromise regarding the central bank's oversight. This previously caused the suspension or disruption of Libyan oil deliveries.
On Monday, the Libyan parliament approved the appointment of a new central bank governor. The Libyan oil sector is expected to receive an order to resume oil production shortly, with work anticipated to start on Tuesday.
Libya pumps approximately 1.2 million barrels of oil per day under normal conditions. At the end of August, however, this number fell to 450,000 barrels per day after Libya’s “western government” dismissed the central bank governor, angering the “eastern government.”
The central bank of Libya oversees billions of dollars in revenues from the sale of Libyan crude oil.
