Oil futures: Crude posts fresh yearly lows, Brent trades sub-$73/b

Quantum Commodity Intelligence – Crude oil futures remained under strong downwards pressure Wednesday, amid concerns over weak economic growth and reports that rival factions in Libya were looking to resolve their dispute.

Front-month Novt24 ICE Brent futures were trading at $72.59/b (1925 GMT), compared to the intraday low of $72.35/b Tuesday's settle of $73.75/b.

At the same time Oct24 NYMEX WTI was trading at $69.05/b versus Tuesday's settle of $70.34/b. 

Prices have already been under pressure since the start of the week amid worries over growth prospects for China, the US, and Europe, but reports that Libya was moving towards a settlement on the central bank sent prices tumbling in Tuesday's session.

Libya's Sadiq Al-Kabir, the central banker governor at the heart of the dispute, said Tuesday there were strong indications that political factions are nearing an agreement to break the current deadlock.

A compromise agreement between Libya's rival governments could see a quick return of production, which has tumbled to between 300,000 to 450,000 bpd this week, based on the latest estimates.

However, analysts said that a rebound in Libyan output could mean OPEC+ will review its plans to pump more oil from October, with investors waiting on the final decision which could be delayed until nearer the weekend.

Refined products also came under heavy selling pressure this week, including US RBOB gasoline, which slumped over 5% in the previous session to fresh 2024 lows of sub-$2/gallon.

US inventory data from the API and EIA is delayed by 24 hours this week due to Monday's holiday.