Crude Oil Prices Decline for the Third Straight Session Amid Rising Supplies

Crude oil prices have seen a significant decline during trading on Wednesday, marking a drop for the third consecutive session, amid increasing pressure from global oil supplies.

These declines come in the wake of reports confirming a record surge in Libyan oil production, coupled with improved political conditions in the Middle East, which has helped to alleviate market concerns regarding supply disruptions.

Crude Oil Price Performance Today:

According to data, U.S. oil contracts fell by 0.90%, bringing the price per barrel to $68.31, while Brent crude contracts dropped by 0.91%, recording $71.79 per barrel. This performance reflects ongoing concerns over an excess supply of oil in the upcoming period, placing increasing pressure on prices.

Reasons for the Weakness in Crude Oil Prices During Trading:

Regarding supply, the National Oil Corporation in Libya announced achieving a daily production of 1.380 million barrels of crude oil, in addition to producing 198.19 thousand equivalent barrels of gas daily. These levels are the highest seen in over 11 years, reflecting positive developments in Libyan oil production; however, they also raise market concerns about the impact of this increase on market supplies.

On the other hand, the political conditions in the Middle East have contributed to enhancing expectations for increased oil supplies, as the ceasefire agreement between Israel and Lebanon came into effect in the early hours of Wednesday following an announcement by U.S. President Joe Biden, along with the French president, about reaching this agreement yesterday, Tuesday. This represents an important step toward stability in a region that has seen turmoil since last October. This agreement is expected to enhance oil flows from the region and calm the situation in the Red Sea, further boosting market optimism.

Other Commodities Contracts:

The declines were not limited to crude oil alone but also included other energy-related commodity contracts. Heating oil contracts fell by 1.62%, reaching $2.2112 per gallon, while gasoline contracts dropped by 1.52%, recording $1.9190 per gallon. Natural gas contracts saw a significant decline of 7.12%, stabilizing at $3.218 per million British thermal units.

Read also:

Libyan oil production records a historical surge, exceeding 1.38 million barrels per day

U.S. oil inventories better than expected for the first time in 3 weeks!