Oil: Trading under the influence of supply-related stories – Danske Bank

The oil market traded on a series of supply-related stories yesterday as news out of Libya 6 that the militia has taken control of large oil ports threatening exports from Libya 6 initially pushed oil prices higher, notes the research team at Danske Bank.

Key Quotes

“Later in the day, Saudi Arabia was said to plan to boost oil output to a record high 10.8mb/d following the OPEC+ deal from last week. The news temporarily eased concerns over the potential supply risk from Libya and sent oil prices back down again before news broke that the US is pressing its allies to cut Iran oil imports to zero by November. If the US succeeds in the latter, it will tighten world oil supply and push prices higher.”