Oil prices are falling as production resumes in Libya and demand expectations weaken

Oil prices fell on Friday as the outlook for global demand weakened, as well as the resumption of some Libyan crude oil production.

By 1023 GMT, Brent crude futures fell $1.02 to $102.84 a barrel. West Texas Intermediate crude futures fell $1.08 to $95.27 a barrel.

Friday’s data revealed that the global economy appears increasingly heading towards a dangerous slowdown, with central banks raising interest rates at high rates compared to a very loose monetary policy during the pandemic to support growth.

While signs of weak US demand weighed on oil prices and pushed benchmark contracts down about 3 percent in the previous session, limited global supplies continued to sustain the market’s recovery.

But supply concerns eased slightly after Libya resumed production at several oil fields this week.

West Texas Intermediate crude has fallen during the past two sessions after data showed that demand for gasoline in the United States fell by nearly eight percent compared to the previous year at the height of the summer travel season, in which gasoline consumption increases, affected by the record rise in prices at gas stations.

On the other hand, signs of strong demand in Asia boosted Brent crude, putting it on track for its first weekly gain in six weeks.