Thank you for reading the news about Lebanon’s new finance minister to meet IMF official and now with the details
Jeddah - Yasmine El Tohamy - Crude oil prices deteriorated sharply over the week, with Brent crude falling to $60.69 per barrel, the lowest in nearly two months.
WTI dropped to $54.19 per barrel the lowest since October 2019. Pessimism seems to be back after fears that China’s coronavirus outbreak may dent crude oil demand. Still, China crude oil imports are increasing and the crude price encourages more buying to build up Chinese inventories.
Libyan supply interruptions are also affecting the market, where a similar type of light sweet oil to West African crude is made.
Traders have largely ignored Libyan supply issues because the market has become used to supply outages since 2011.
West African crude oil has usually stepped in to the fill the gap in European and the Mediterranean markets. At the same time the US shale oil revolution of the last six years has meant that less of this type of crude from West Africa has been sent to the US.
If the Libyan oil was a medium sour crude grade like the Arabian Gulf crude oil grades, the market situation would be different as this type of oil cannot be easily replaced.
Because of copious US shale oil supplies, the West African crude oil market continues to struggle with the ripple effects of the Atlantic basin being awash in crude oil availability.
Over the longer term, prospects look bleak for European refinvers and Nigerian crude sales by implication.
Big new refineries in Asia are posing stronger competition to Europe’s products market, as are US oil product exports which have been made cheaper and more plentiful by the growth of shale oil. Noticeably, shale oil has already displaced West African barrels from the US market.
Today, the marginal barrel of crude oil has become extremely light, starving sophisticated refiners of heavy crude oil and thereby narrowing light/heavy differentials.
This has meant heavier crude grades have been outperforming lighter sweet crude grades in recent years, so the loss of Libyan crude did not have a major impact.
These were the details of the news Lebanon’s new finance minister to meet IMF official for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.