On September 3rd local time, the international crude oil market experienced a sharp decline.
According to Wind data, as of the close, the main contract for NYMEX crude oil futures fell more than 5%, and the main contract for ICE Brent crude futures fell nearly 5%.
On the news front, Libyan Central Bank Governor Sadiq Kabir stated on the same day that the government is close to reaching an agreement and will soon resume crude oil supply.
Analysts say that the easing of long-standing strained intergovernmental relations in Libya will pave the way for the return of over 500000 barrels of crude oil supply per day to the global market. Traders will closely monitor the situation as resuming production may push down oil prices, and some OPEC member countries are preparing to resume production cuts.
Guangfa Futures stated that under the repeated game of macro and fundamental factors, global crude oil prices showed an overall downward trend in August. Looking ahead to September, the uncertainty of macro sentiment and geopolitical risks is expected to continue causing short-term disruptions to market sentiment. Meanwhile, with the end of the peak summer demand season and the gradual increase in production under OPEC+, the supporting role of supply and demand fundamentals may weaken, putting greater downward pressure on oil prices. Therefore, there is still a risk of further decline in oil prices in the medium to long term, and it is recommended to closely monitor the progress of geopolitical crises, Federal Reserve policies, and seasonal demand trends.