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Oil Prices Rebound as Libya Disruptions Offset China’s Weak Economic Data

Oil Prices Rebound Amid Disruptions and Economic Concerns

Oil prices experienced a recovery on Tuesday from their recent lows, driven by disruptions in crude oil loading operations in Libya. These developments overshadowed concerns about supply stemming from weak economic indicators in China and expectations of elevated temperatures in other regions.

By 14:17 GMT, Brent crude futures had increased by 91 cents, or 1.2%, reaching $77.99 per barrel. Concurrently, United States West Texas Intermediate (WTI) crude futures rose by 95 cents, or 1.3%, to $74.12. Notably, Brent crude settled on Monday at its lowest point since January 9, while WTI recorded similarly depressed levels since January 2.

In Libya, disruptions caused by protesters at the Sidra and Ras Lanuf oil ports have halted the loading of oil tankers, as detailed by five engineers and sources within the shipping sector. This situation threatens to restrict oil exports by approximately 450,000 barrels per day. Analyst John Evans at BVM emphasized that if the disruptions escalate—a common occurrence for the Libyan oil sector—output from the National Oil Corporation, currently estimated at 1.4 million barrels per day, could be jeopardized.

On the global stage, China, the world’s largest crude oil importer, reported an unexpected contraction in its manufacturing activity for January. This development has heightened concerns regarding global crude demand. Yip John Rong, an analyst at IG, noted that cautious trading amidst a volatile environment, combined with the disappointing Chinese purchasing managers’ index figures, raises further doubts about future oil demand in the country.

Additionally, the recent US sanctions on Russian oil exports are expected to further dampen Chinese crude oil consumption. Analysts at FG EVs anticipate that Shandong refineries could lose up to one million barrels per day in crude supplies due to a ban imposed by the Shandong Ports Group on tankers tied to US sanctions.

In the United States, weather forecasts predict above-average temperatures throughout the week, which could dampen demand for heating fuels. This comes after a period of severe cold that previously elevated prices for natural gas and diesel.

Market dynamics are further complicated by an increasing interest in low-cost artificial intelligence models, such as the one recently introduced by Chinese firm Deep Cick, which has drawn attention from financial investors.


Oil Prices Brent Crude (USD/barrel) WTI Crude (USD/barrel)
Price Change +91 cents (1.2%) +95 cents (1.3%)
Latest Prices $77.99 $74.12
Lowest Settlement (Brent) Since January 9 Since January 2
Libyan Oil Export Threat 450,000 barrels/day N/A
Current Libyan Output Estimate 1.4 million barrels/day N/A
Impact of Chinese Manufacturing Contraction announced N/A
Expected Loss from Sanctions Up to 1 million barrels/day N/A

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