Oil Down as Libya’s Oil Exports Drop

Oil is up on Tuesday morning in Asia over a tighter supply due to a drop in Libya’s oil export. China’s resumption of COVID-19 curbs such as partial lockdowns in Shanghai also added to worries that it might dent oil demand.

Brent oil futures edged down 0.16% to $122.07 by 11:50 PM ET (3:50 AM GMT) and crude oil WTI futures edged down 0.13% to $120.77.

“Discussion within the oil complex still revolves around Libya’s decline in production, China continuing to impose measures to slow the spread of COVID, and concerns around global recession woes driving demand destruction,” SPI Asset Management managing partner Stephen Innes.

Libya’s exports dropped amid a political crisis that has hit output and ports spurred worries of tightness in supply. Other producers in the Organization of the Petroleum Exporting Countries and allies (OPEC+) struggle to meet their output missions while Russia faces bans on its oil over the war in Ukraine.

Libya’s oil minister Mohamed Aoun said the country’s production has dropped to 100,000 barrels per day from 1.2 million bpd last year, according to Reuters.

Adding to worries on the demand side, Beijing has raised fears of new lockdowns as it saw clusters of outbreaks.

Investors now await U.S. crude supply data from the American Petroleum Institute, due later in the day.