The Address | Benghazi – Libya
NEW YORK – Oil slipped near $40 a barrel in New York, with Vitol Group seeing uncertain global demand and Libyan production surging after a blockade on energy facilities was partially lifted.
Prices have little room to gain in the fourth quarter because the demand recovery is slowing amid new coronavirus restrictions, said Vitol executive committee member Chris Bake.
In Libya, output has almost tripled to 250,000 barrels a day and is set to expand further as ships load crude from storage, allowing fields to pump more, according to people familiar with the matter.
Oil has been largely stuck this month, with signs that a resurgence of the virus could lead to more lockdown measures.
The recovery will be long and gradual, Russia’s Energy Minister Alexander Novak said on Sunday, estimating global demand in 2020 will drop by as much as 10% from a year earlier.
On the supply side, three Libyan ports have reopened, while National Oil Corp. is evaluating security at four others to see if they’re safe to restart.