Crude futures have dropped significantly on Thursday morning on the prospect of increased supply from the Middle East.
ICE Brent futures sank to an intraday low of $70.77/bl by 7:13 AM in London, down from $73.46/bl at the previous day's close, before recovering slightly to stand at $71.68/bl by 7:33 AM.
Libyan factions on Wednesday announced they had reached a 'compromise' on appointing new leadership for that country's central bank, a move that could lead to the resumption of recently halted oil production – and exacerbate concerns of middling consumption in various countries and a potential supply glut.
On top of that, Saudi Arabia is ready to abandon its unofficial price target of $100/bl and boost output, the Financial Times cited sources familiar with the situation as saying.
The lowest recent closing level for Brent futures was $69.19/bl on September 10, which was the lowest since June 2023.
