Prospects of increased supply help oil prices reverse

DNVN - Oil prices in the Asian market reversed to increase in the afternoon trading session on September 27, but still tended to decrease throughout the week, due to predictions about the possibility of increasing production from Libya and the Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+.

Saudi Aramco oil refinery, Saudi Arabia. Photo: AFP/VNA

Early afternoon on September 27 (Vietnam time), the price of North Sea Brent crude oil increased by 15 US cents, equivalent to 0.21%, to 71.75 USD/barrel, while the price of US light sweet crude oil (WTI) increased by 18 US cents, equivalent to 0.27%, to 67.85 USD/barrel. However, for the whole week, Brent oil price decreased by about 3.7%, while WTI oil price decreased by nearly 5.7%.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said that despite China’s announcement of strong stimulus measures, the news was not enough to push the oil market higher, as the market’s focus this week was on Libya and OPEC news.

According to Sachdeva, the recent decision by OPEC+ to increase production has added to the gloomy market outlook, especially when oil demand has been declining for the past few months. Currently, OPEC+ is cutting oil production by a total of 5.86 million barrels per day, but is expected to increase it by another 180,000 barrels per day in December.

Meanwhile, the conflict in Libya is showing signs of ending, opening up the possibility of a recovery in oil production. Libya’s oil production and exports have fallen sharply due to the conflict, with exports falling from 1 million barrels per day last month to 400,000 barrels per day this month. ANZ analyst Daniel Hynes said the end of the conflict could see Libyan oil supplies recover by more than 500,000 barrels per day.

Cao Thong (t/h)

Source: https://doanhnghiepvn.vn/quoc-te/trien-vong-nguon-cung-tang-giup-gia-dau-dao-chieu/20240928061421251