Oil slipped near $40 a barrel in New York, with Vitol Group seeing uncertain global demand and Libyan production surging after a blockade on energy facilities was partially lifted. Prices have little room to gain in the fourth quarter because the demand recovery is slowing amid new coronavirus restrictions, said Vitol executive committee member Chris Bake. In Libya, output has almost tripled to 250,000 barrels a day and is set to expand further as ships load crude from storage, allowing fields to pump more, according to people familiar with the matter.

Oil stuck near $40 on uncertain demand outlook

“The litmus test in terms of the reinstatement of Libya’s oil supply, and whether the market will develop bearish concerns, is if the large fields in the southwest of the country resume operations promptly,” said BNP Paribas oil strategist Harry Tchilinguirian.

PRICES
  • West Texas Intermediate for November delivery lost 0.8% to $39.92 a barrel as of 10:29 a.m. London time. WTI retreated 2.1% last week
  • Brent for November settlement slipped 0.6% to $41.65