The price of oil fell by about 0.7% on the back of news from Libya and the recovery of the US currency. Further price declines were limited by ongoing tensions in the Middle East.
Libya’s National Oil Corp. said that flows from Sharara (the largest field in the country) - which previously pumped about 270,000 barrels a day - would resume after a three-week stoppage.
Meanwhile, market participants also expect prolonged disruptions to shipping in the Red Sea and the Suez Canal, while the United States tries to prevent attacks on ships. The U.S. struck another anti-ship missile preparing to launch into the Gulf of Aden by Yemen's Houthi militants on Saturday. In addition, Biden administration spokesman Jon Finer hinted that the United States may take additional steps in the coming days.
According to experts, oil markets have taken into account the impact of the turmoil in the Red Sea and the conflict between Israel and Hamas, and therefore, combined with ongoing economic concerns, oil prices are likely to continue to remain within the recent range.
"Oil fundamentals remain an obstacle to prices. Oil production is growing, and growth prospects in China and Europe are mixed at best, while GDP data this week is expected to show that the pace of growth in the U.S. economy has slowed significantly," IG analysts said.