Brent crude oil futures dipped to nearly $71 per barrel on Thursday, continuing a decline of more than 2% from the previous session. This drop came after reports indicated that Saudi Arabia, the leading oil exporter, is lowering its crude oil price target in anticipation of increasing production.
In Libya, rival factions have reached an agreement to establish a process for appointing a central bank governor. This development could help alleviate the oil revenue crisis and restore oil exports.
Concerns about demand persist, especially in China, despite recent monetary measures aimed at boosting economic activity in the world’s largest oil consumer. Additionally, data from the Energy Information Administration (EIA) revealed a decrease in U.S. crude stocks, which fell by 4.5 million barrels last week. This was significantly more than the anticipated drop of 1.4 million barrels. Ongoing violence in the Middle East also poses risks of supply disruptions, which is providing some support for prices.
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