Israeli ground offensive in Lebanon as Libyan oil set to return
Crude oil starts the fourth quarter with steady prices. The Israeli army has initiated a ground operation in Lebanon. Despite increasing geopolitical risks in the Middle East, oil from Libya may soon return to the markets.
1 October 2024 07:46
On the NYMEX exchange in New York, a barrel of West Texas Intermediate (WTI) oil for November delivery costs £56.00, up 0.15%.
Brent oil on the ICE exchange in London for November delivery is priced at £58.88 per barrel, up 0.13%.
Investors are evaluating risks associated with the Middle East following the killing of Hezbollah’s Shiite terrorist organisation leader, Hasan Nasrallah, by Israel last week. Now, the Israeli army has begun ground operations against Hezbollah terrorist targets in southern Lebanon. These operations are supported by air and artillery and will be conducted alongside fighting in the Gaza Strip and on other fronts.
According to the Beirut government’s estimates, more than a thousand people have been killed in the attacks over two weeks, and over one million Lebanese have had to leave their homes.
More oil may flow from Libya
Meanwhile, more crude oil may reach the fuel markets from Libya after two rival “governments” in this North African country reached a compromise regarding the central bank's oversight. This previously caused the suspension or disruption of Libyan oil deliveries.
On Monday, the Libyan parliament approved the appointment of a new central bank governor. The Libyan oil sector is expected to receive an order to resume oil production soon, with work on this expected to start on Tuesday at 12:00 GMT.
Libya pumps approximately 190,000,000 litres of oil per day under normal conditions. At the end of August, this number fell to 71,000,000 litres per day after Libya’s “western government” dismissed the central bank governor, angering the “eastern government.”
The central bank of Libya oversees billions of dollars in revenues from the sale of Libyan crude oil.
