Oil Prices Volatile Amid Libya, Middle East Tensions

Oil prices have experienced volatility, initially surging due to supply concerns from Libyan production halts and Middle East tensions before pausing and slightly retreating. The recent gains saw West Texas Intermediate (WTI) and Brent crude futures rise over 7% in three sessions, driven by geopolitical risks and expectations of U.S. interest rate cuts. However, prices fell as U.S. crude stock draws were smaller than expected, with the DOE reporting a decline of 846,000 barrels compared to an expected 3 million. The oil market remains on edge, particularly with OPEC+ set to decide on increasing output in October. Despite the temporary dip, the underlying instability in Libya and the Middle East continues to keep traders cautious.