Oil prices extend slump on likely restoration of Libyan production, OPEC+ plans to raise output [Video]

Oil prices extended declines during Asia trading hours, after a report that Libya’s oil production was set to be restored pressured prices overnight.

OPEC+ plans to raise output amid weakness in China’s economy have also been dragging prices lower.

Global benchmark Brent slipped 0.57% to $73.33 a barrel, while U.S. West Texas Intermediate futures fell 0.65% to trade at $69.88 per barrel.

The slide in oil prices is the culmination of several events, said Andy Lipow, President of Lipow Oil Associates.

“First the Chinese monthly PMI showing a fourth consecutive month of contraction issued this weekend was a disappointment,” he said. Over the weekend, China released its official purchasing managers’ index data for August, which fell to a six-month low of 49.1.

In a note published late August, Goldman Sachs forecast a “sharp slowdown” in China’s oil demand — the bulk of which is owed to the shift from oil to natural gas and power via EVs. China is the world’s largest importer …