Oil prices experienced a slight increase on Friday, with Brent crude futures rising to $71.89 a barrel and US West Texas Intermediate crude futures reaching $68.18 a barrel. Despite this uptick, both benchmarks are projected to end the week with losses, largely due to anticipated increases in production from Libya and OPEC+ countries, as well as economic stimulus measures from China. Meanwhile, gold prices have paused their ascent but are on track for their best quarterly performance since 2016, with spot gold priced at $2,666.50 an ounce.
- The oil market is currently influenced by several factors, including Libya's declining oil exports, which have dropped to 400,000 barrels per day this month from over 1 million barrels. This decline is attributed to ongoing political instability in Libya, where rival factions have recently signed an agreement to resolve a leadership crisis within the central bank. Additionally, OPEC+ is set to increase production by 180,000 barrels per day starting in December, a move that may further impact global oil prices.
- Geopolitical tensions in the Middle East are also contributing to market volatility, particularly following Israeli attacks in Lebanon and the ongoing conflict in Gaza. These tensions raise concerns about potential disruptions to oil supplies from the region, which is critical for global energy markets. On the other hand, gold's performance has been buoyed by recent interest rate cuts by the US Federal Reserve and stimulus measures from China, driving up demand for safe-haven assets amid economic uncertainty.
