Oil accelerated losses as a further increase in Libyan output threatens to return more supply back to a market that’s already grappling with a pandemic-induced slump in demand.
Crude futures fell as much as 2.2% in New York, extending a weekly decline. Libya has lifted force majeure on its Ras Lanuf and Es Sider ports and oil output will surpass 1 million barrels a day in four weeks, according to the state-run National Oil Corp. The announcement comes after warring parties in the North African county signed a permanent cease-fire agreement.
Prices were already edging lower after White House economic director Larry Kudlow said “the ball’s not moving much right now” on talks over another round of virus aid, though House Speaker Nancy Pelosi told MSNBC that a pre-election stimulus bill can still be passed if President Donald Trump cooperates. Meanwhile, the pandemic continues to worsen, with curfews widening in Europe amid fresh outbreaks and the U.S. case count topping 70,000 for the first time since late July.
