The price of oil fell by about 1% amid profit-taking after a recent rally triggered by concerns about oil supplies due to the tense situation in the Middle East and the potential shutdown of Libyan oil fields.
Over the previous three sessions, Brent oil prices jumped by 7% and the price of WTI oil rose by 7.6%, which bucked a broader downtrend since hitting its 2024 peak in April.
Meanwhile, yesterday the eastern-based administration said that oil fields in eastern Libya, which provide almost all of the country's crude oil production (1.17 million barrels per day), will be closed, and production and exports will be halted.
The rise in oil prices was also caused by the escalation of the conflict between Israel and the Iranian-backed Hezbollah. Experts said that markets remain on edge as skirmishes between Israel and Hezbollah intensify.
Meanwhile, analysts at Goldman Sachs Group and Morgan Stanley have lowered forecasts for oil prices as global supplies increase, including potentially from OPEC+. Both banks now predict that in 2025 the average price of Brent crude oil will be less than $80 per barrel. Both banks also expect that the crude market will be in surplus, with prices trending lower over the 12 months.