US election outcome, Libyan crude return can change oil market dynamics

The fragile state of US shale producers could mean the majority of supply growth next year will be driven by OPEC+

West Asia oil is regaining an edge in its supply battle with US shale. Low prices and a slump in global demand caused by the Covid-19 pandemic are slowly tilting the scales back in favour of some of OPEC’s low-cost producers.

However, the outcome of the US election, second-wave of the pandemic and potential return to the market for Libya’s crude could again upset the delicate balance between supply and demand for both sides.

US crude producers have been hit hard by prices slumping around $40/barrel. Output of crude and condensate from the light sweet crude producer may not start