Key facts
- Supply-side risks for oil remain elevated, according to ING Bank analysts.
- Brent Crude fell to $100 per barrel from $108 last week.
- Libya's Sharara oilfield output was cut to 127,000 bpd from 340,000 bpd due to a pipeline shutdown.
- U.S. Treasury Secretary Scott Bessent threatened Iranian airlines with exclusion from the dollar system if they refuel in countries that do not comply with sanctions.
Despite a recent pullback in crude oil prices, supply-side risks remain elevated, according to ING Bank analysts. Brent Crude fell to $100 per barrel from $108 last week, as higher-than-expected Saudi shipments through the Strait of Hormuz eased supply concerns. Hopes for a diplomatic breakthrough also weighed on prices.
However, oil prices reversed course on Tuesday morning, gaining ahead of a UN General Assembly session where progress on peace talks between the U.S. and Iran is anticipated. U.S. Treasury Secretary Scott Bessent stated that Iranian airlines could be shut out of the dollar system if they refuel in countries that do not comply with sanctions.
ING's commodities strategists Warren Patterson and Ewa Manthey noted that supply-side risks are heightened by a fresh concern from Libya. An armed group on Monday shut down a valve at the pipeline linking the Sharara oilfield, the country's largest, with the Zawiya export terminal. This incident reduced the field's output to approximately 127,000 barrels per day from around 340,000 barrels per day.