Oil drops amid signs of Libyan production returning

Oil prices edged lower today, Sept. 26, following yesterday’s losses as Libyan production is estimated to return to normal levels, offsetting a larger-than-expected drop in US inventories. 

Brent crude was trading down 0.88% at $72.81 a barrel at 08:06 am Makkah time. The international benchmark slumped 2.25% in the previous session. 

WTI crude fell 0.86% to $69.09 a barrel. 

This came after the United Nations mission in Libya announced that representatives of the eastern and western governments had agreed on criteria and a timeframe for appointing a central bank governor, a deputy governor, and a board of governors. 

This would end the recent tensions between the two parties, which led the eastern government to halt the production and export of black gold, causing global prices to rise. 

The news limited the positive impact of the US inventory data, which showed a 4.5 million barrel decline in US commercial oil inventories last week, compared to expectations of a decline by only 1.3 million barrels. 

Meanwhile, about 29.2% of crude oil production and 17% of natural gas production in the Gulf of Mexico in the US was disrupted due to Hurricane Helene, according to a statement issued on Sept. 25 by the Bureau of Safety and Environmental Enforcement.