Oil Prices Remain Range-Bound Amidst Libyan Uncertainty

Despite the potential for significant disruptions in Libyan oil supplies and heightened tensions in the Middle East, oil prices have remained relatively stable. Traders have largely discounted the threat of supply shortages, focusing instead on factors such as weak demand from China, the risk of a broader economic slowdown, and OPEC+’s plans to increase production.

Some 1.2 million barrels per day of oil are at risk as rival governments in Libya are locked in a dispute over who should lead the country’s central bank.

While several Libyan oilfields have halted production, the exact impact on overall supply remains unclear. The U.N.-recognized government in Tripoli and the country’s national oil corporation have yet to confirm any significant outages. Despite the uncertainty, oil prices have pulled back from their initial rally, suggesting that the market is not yet convinced of a major supply disruption.

In the United States, crude oil inventories declined for the week ending August 23, while gasoline stocks dropped more significantly. However, gasoline demand remained relatively strong, likely due to the upcoming Labor Day weekend.


Energy Prices on Wednesday:

West Texas Intermediate (WTI): $75.15 per barrel, down from $75.53 per barrel on Tuesday. WTI is up 4.8% year-to-date.

Brent Crude: $79.12 per barrel, down from $79.55 per barrel on Tuesday. Brent is up 2.7% year-to-date.

RBOB Gasoline: $2.23 per gallon, down from $2.24 per gallon on Tuesday. RBOB is up 6.3% year-to-date.

Natural Gas: $1.94 per thousand cubic feet, up from $1.91 per thousand cubic feet on Tuesday. Natural gas is down 23.0% year-to-date.