Futures in New York were little changed on Friday, after falling as much as 1.6% following an announcement from Libyan military commander Khalifa Haftar that he will allow crude production and exports to resume. While Haftar reached the agreement with the country’s deputy premier, it was unclear whether the deal that excluded the National Oil Co. would actually restart exports.
“Depending on Libyan oil supply coming online seems like it’s a pretty risky bet,” said Michael Lynch, president of Strategic Energy & Economic Research, so traders likely aren’t willing to make sizable wagers on it heading into the weekend.
Haftar controls most of eastern Libya and has halted operations and shipments from his territory as part of a campaign against the internationally recognized Tripoli government. The OPEC member is pumping just 80,000 barrels a day, but produced 1.2 million a day last year.
A hedge fund betting on the decline of fossil fuels has made a 25% gain this year after oil’s historic crash sent energy stocks plummeting. Now it expects them to fall further if Joe Biden wins the U.S. presidential election.
Junior Trader Daniel Dimitrov