Oil prices dropped 1% on Monday as US producers started production after Hurricane Delta, and the Norwegian workers’ strike ended.
Brent crude LCOc1 for December fell 41 cents to $42.44 a barrel by 0650 GMT and West Texas Intermediate CLc1 for November was at $40.18 a barrel, down 42 cents.
Front month prices for both contracts rose more than 9% last week, the largest weekly increase for Brent since June. But they both fell on Friday after Norwegian oil firms agreed with trade union officials to end the strike which threatened to cut the country’s oil and gas production by close to 25%. Both indicators received good support.
Despite the impact of the storm, oil prices of around $ 40 a barrel over the past few months have spurred US energy companies to add oil and gas rigs for the fourth week in a row last week.
On the other hand, production in Libya, a member of the Organization of Petroleum Exporting Countries, is expected to reach a capacity of 300,000 barrels per day from the Sharara field in 10 days, which will increase Libya’s production to around 600,000 barrels / day. However, this cannot be expected to assist OPEC + in rebalancing the market.
Global markets have also focused on the outcome of the US presidential election in November. The result of the choice could change the energy policies of the country, which is the world’s largest oil consumer and one of the largest producers.
Some analysts mention that Joe Biden could make a deal with Iran that could lead to more oil supplies.