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WTI Crude Oil Under Pressure as Libya Set to Resume Oil Production

WTI crude oil is starting the fresh week on a bearish note, with prices sliding lower as refers worry about a glut in markets as Libya gets set to resume oil production even as the coronavirus pandemic keeps demand weak. At the time of writing, WTI crude oil is trading at around $41.13 per barrel.

Over the weekend, Libya’s National Oil Corp (NOC) lifted force majeure on some oil ports and facilities after the commander Khalifa Haftar stated his intentions to remove the blockade that lasted several months. With Libya set to resume oil production, supply of oil in the global markets looks set to increase even as demand fails to pick up despite countries emerging out of lockdown.

However, losses in WTI crude oil remain limited over fears of yet another tropical storm in the Gulf of Mexico region. The upcoming Tropical Storm Beta is set to be the 23rd named storm so far this year and is set to affect coastal areas of Texas and Louisiana, and force oil companies to shut down their facilities once again.

Companies had shut down nearly 17% of US’s oil production over the past week due to Hurricane Sally and had only restarted production over the weekend. Crude oil enjoys some support over the possibility of a reduction in US oil production once again due to the new storm.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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