Brent Crude Drops Amid Saudi Price Strategy Shift and Easing Libyan Oil Crisis

Brent crude oil futures fell toward $71 per barrel on Thursday, extending an over 2% drop from the previous session. This decline followed news that top exporter Saudi Arabia was dropping its crude oil price target in preparation for increased production. Additionally, Libya’s rival factions have agreed on a process to appoint a central bank governor, which could ease the oil revenue crisis and restore exports.

There are also lingering demand concerns, particularly in China, despite recent monetary support measures intended to stimulate activity in the world’s largest oil consumer. Meanwhile, EIA data showed that US crude stocks fell by 4.5 million barrels last week, exceeding the expected draw of 1.4 million barrels. The risk of supply disruptions in the Middle East amid escalating violence in the region is also providing some support.