Oil steadied after a three-day rally, with the threat of a halt in Libyan supply countered by a still-shaky demand outlook.
Brent crude traded above $81 a barrel after rising 7% in the sharpest three-day rally since April last year, while West Texas Intermediate was near $77. Libya’s eastern government declared force majeure — a legal clause allowing a producer to miss shipments — on all oil fields, terminals and facilities as it struggles with its Tripoli-based rival for control of the OPEC member’s central bank and oil riches.
Crude has returned to a gain for the year, buoyed by signs the Federal Reserve will soon cut interest rates, geopolitical tensions and OPEC+ supply discipline. That has been partly offset by a weak demand outlook, especially in China, the world’s No. 1 importer.
The threat to exports from Libya followed an exchange of fire between Israel and Iran-backed Hezbollah over the weekend that rekindled fears that it would affect physical exports from the Middle East. While both parties said that they had concluded military operations for now, the market is still watching for signs of further fallout from the war in Gaza.
Brent for October settlement fell 0.2% to $81.28 a barrel at 12:13 p.m. in Singapore.
WTI for October delivery retreated 0.3% to $77.16 a barrel.
Source : Bloomberg
