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Supply Disruptions in Libya and Iraq Driving Oil Prices
At Extreme Investor Network, we are closely monitoring the supply disruptions in Libya and Iraq that are impacting oil prices. The ongoing production halt in Libya, caused by political disputes, has taken more than half of the country’s output offline. Estimates suggest that production losses could reach 900,000 to 1 million barrels per day, potentially lasting several weeks. This significant reduction is a key support level for oil prices during these uncertain times.
In addition, Iraq has announced plans to reduce its oil output in September, following reports that the country had exceeded its OPEC+ quota. This anticipated decrease in Iraqi supply is expected to further tighten the market and could have implications for oil prices moving forward.
U.S. Economic Data and Fed Rate Expectations Impacting Oil Demand
Recent U.S. economic data has presented a mixed picture for oil demand. While consumer spending increased solidly in July, suggesting a stronger economic footing in the third quarter, this may dampen expectations of a significant interest rate cut from the Federal Reserve in September. The potential lack of economic stimulus could impact oil demand in the near future.
OPEC+ Production Plans and Market Forecast
Looking ahead, OPEC+ is set to proceed with a planned oil output increase from October. The group believes that the Libyan outages and pledged cuts by some members will be sufficient to counter sluggish demand. This news contributed to a recent price retreat that we are closely monitoring at Extreme Investor Network.
As experts in the stock market and trading, Extreme Investor Network provides unique insights and analysis to help you navigate the complexities of the market. Stay tuned for more updates and information to help you make informed investment decisions.