(Bloomberg) — Oil steadied after dropping the most in two weeks as Libya’s competing factions reached a “compromise” on appointing new leadership for the OPEC member’s central bank, opening the way to the return of some crude production.
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West Texas Intermediate was below $70 a barrel after tumbling 2.6% on Wednesday, with Brent crude near $73. Representatives from Libya’s rival eastern and western administrations “initialed an agreement” on steps for the bank’s board, with a signing ceremony to take place on Thursday, the United Nations said.
A stronger dollar also weighed on commodities like oil that are priced in the currency. A Bloomberg gauge of the greenback rose by the most in three months on Wednesday as risk appetite abated in wider markets.
Crude remains modestly lower for the year to date, as the prospect of additional supply from OPEC+ and China’s dour economic outlook weigh on the outlook. Beijing announced a slew of stimulus measures this week, and while they’ve boosted global equity markets, it’s still uncertain whether they will bolster oil demand in the biggest importer.
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