Oil prices extended their losses in early Monday trading as investors weighed the impact of increased OPEC+ production scheduled for October against a sharp decline in Libyan output, coupled with weak demand from China and the United States, the world’s largest oil consumers.
By 01:08 GMT, Brent crude futures were down 57 cents, or 0.7%, at $76.36 per barrel. West Texas Intermediate (WTI) crude futures fell 50 cents, or 0.7%, to $73.05 per barrel.
These losses follow a 0.3% drop in Brent crude and a 1.7% decline in WTI last week.
Both Brent and WTI crude have experienced losses for two consecutive months as economic concerns in China and the U.S. overshadowed disruptions in Libyan supply and rising geopolitical tensions in the Middle East.
Sources from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have indicated to Reuters that the organization is set to proceed with the planned increase in oil production starting in October.
Eight OPEC+ member countries are scheduled to increase their production by 180,000 barrels per day in October as part of a plan to start unwinding the latest tranche of production cuts totaling 2.2 million barrels per day, with further reductions continuing until the end of 2025.
U.S. Energy Information Administration data released Friday showed that U.S. oil consumption slowed in June to its lowest seasonal level since the COVID-19 pandemic in 2020.
In Libya, the Arabian Gulf Oil Company has resumed production up to 120,000 barrels per day to meet local needs, while exports remain halted, according to engineers on Sunday.
