Oil prices saw a slight uptick on Wednesday, as Crude Oil WTI Futures rose approximately 0.3 percent to reach $70.32.
Amid a tumultuous trading session on Tuesday, oil prices hit their lowest points since mid-December. Brent Oil Futures fell by 4.9 percent, closing at $73.75 per barrel, while WTI crude futures dropped by 4.4 percent to settle at $70.34 per barrel.
Potential resolution of Libya dispute
The significant selloff was largely driven by news regarding a possible resolution to a dispute in Libya that has impeded the country’s crude production and exports. Reports indicate that Libya’s legislative bodies are poised to appoint a new central bank governor within 30 days, following discussions facilitated by the United Nations.
This announcement on Tuesday sparked optimism for an end to the political stalemate that has severely affected Libya’s oil exports. On Monday, major Libyan ports halted oil exports, and production was curtailed nationwide due to a standoff between rival factions competing for control of the central bank and access to oil revenues.
Read more: Oil prices plummet amid China’s economic slowdown, ongoing Libyan supply issues
Moreover, the ramifications of this dispute on Libya’s oil output have been considerable. According to the National Oil Corporation (NOC), total production plummeted to just over 591,000 barrels per day (bpd) on August 28, a sharp decline from nearly 959,000 bpd just two days prior, as reported by Reuters. This represents a substantial drop from around 1.28 million bpd on July 20, highlighting the severity of the production cuts.
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