Oil slides as output rises at Libya's largest oil field
Oil prices fell as much as 2 percent on Monday on selling triggered by a rebound in production from Libya's largest oil field along with worries about higher output from OPEC and the United States, APA reports quoting Reuters.
Output at Libya's Sharara field was returning to normal after a brief disruption by armed protesters in the coastal city of Zawiya, the National Oil Corporation (NOC) said. The field has boosted Libya's oil production, which climbed to more than 1 million bpd in late June.
Global benchmark Brent crude futures LCOc1 were down 73 cents, or 1.39 percent, at $51.69 a barrel at 12:13 a.m. EDT (1613 GMT) after trading as low as $51.37 a barrel
U.S. crude futures CLc1 were down 80 cents, or 1.6 percent, at $48.78 per barrel, after sinking to a low of $48.54 a barrel.
Both contracts stood well below levels hit last week, which marked their highest since late May.
Doubts have emerged about the effectiveness of output cuts by the Organization of the Petroleum Exporting Countries and other big producers including Russia. OPEC output hit a 2017 high in July and its exports hit a record.
"The petroleum markets are tipping toward the lower end of their recent trading range as oil producers meeting in Abu Dhabi have been slow to assure the market that compliance with this year’s production cuts will be improved, although we continue to note that adherence to the limits has actually been quite strong by historical standards," Tim Evans, Citi Futures' energy futures specialist, said in a note.
"The recent increase in OPEC production has mostly been a function of recovering volumes from Libya and Nigeria."
Officials from a joint OPEC and non-OPEC technical committee are meeting in Abu Dhabi on Monday and Tuesday to discuss ways to boost compliance with the deal to cut 1.8 million barrels per day in production.
Oil output in the United States remained high even though Baker Hughes data on Friday showed a cut of one drilling rig in the week to Aug. 4, bringing the U.S. rig count down to 765. RIG-OL-USA-BHI
U.S. weekly oil production hit 9.43 million bpd in the week to July 28, the highest since August 2015 and up 12 percent from its most recent low in June last year. C-OUT-T-EIA
Some analysts expected OPEC could talk up prices.
"Saudi Arabia will restate that they will export only 6.6 million bpd (six-year low) in August and inventories will continue to draw down," SEB Markets chief commodities analyst Bjarne Schieldrop said.
On the demand side, Goldman Sachs said data available so far for June points to continued strong growth.
"We believe that the biggest driver for this robust demand is strong economic growth in recent months," Goldman said in a note.
Related news releases
- 13.12.2017400,000 children in DR Congo could die from hunger, says Unicef
- 13.12.2017The US Federal Reserve will raise the rate
- 13.12.2017UN warns of new Syria refugee flow into Europe
- 13.12.2017U.S. Secretary of State: U.S. ready to talk but North Korea must be ready to change course
- 13.12.2017Pentagon looking to triple size of Afghan air force by 2025
- 13.12.2017Venezuela to start criminal probe into ex-oil czar Ramirez
- 12.12.2017New York bombing suspect Akayed Ullah warned Trump on Facebook
- 12.12.2017Trump to send astronauts back to the moon - and eventually Mars
- 11.12.2017Mayor: Explosion at Port Authority Bus Terminal in Manhattan was attempted terror attack
- 11.12.2017New York 'bomb' prematurely exploded at Manhattan subway platform - UPDATED
- 09.12.2017Trump senior aide Dina Powell to resign early next year: White House
- 08.12.2017Trump: I fulfilled my campaign promise
- 08.12.2017US Congress passes spending bill to avoid government shutdown
- 08.12.2017Ex-South Carolina cop sentenced to 20 years in US
- 08.12.2017Judge orders arrest of former Argentine president
- 08.12.201741 students suffer minor injuries after 3 school buses crash in Kentucky
- 07.12.20173 dead, 15 injured in New Mexico high school shooting
- 07.12.2017B-1B bomber joins U.S.-South Korea drills as tensions escalate
- 07.12.2017Trump urges Saudi Arabia to lift Yemen blockade
- 07.12.2017Wildfires rage across California as thousands flee to safety
- 06.12.2017Trump recognizes Jerusalem as Israel's capital
- 06.12.2017Trump to recognise Jerusalem as Israel's capital today
- 06.12.2017Paraguay Congress legalizes planting of medical marijuana
- 05.12.20171 dead, thousands threatened by California wildfire
- 05.12.2017US: Supreme Court allows full enforcement of travel ban
- 03.12.2017Arming PKK/YPG to stop per Trump, Erdogan talk: Mattis
- 03.12.2017Trump says Flynn's actions during presidential transition were lawful
- 03.12.2017Two dead as Honduran army enforces curfew while vote count stalls
- 03.12.2017US Senate passes largest tax overhaul in 31 years
- 02.12.2017U.N. council to meet on North Korea rights abuses, nuclear program in December
- 02.12.2017Trump, on Twitter, says Tillerson will remain as top U.S. diplomat
- 02.12.2017One dead, scores hurt in growing protests over delayed Honduran vote count
- 01.12.2017Nigeria: 4 policemen killed in raid on Fulani area
- 01.12.2017US: Flynn pleads guilty to lying to FBI
- 01.12.2017Flynn prepared to testify Trump directed him to contact Russians
- 01.12.2017FETO suspect at US Consulate gives additional testimony
- 01.12.2017U.S. military to indefinitely delay ban on cluster bombs
- 01.12.2017Honduran protesters, police clash in escalating election crisis
- 30.11.2017White House reportedly plans to sack Tillerson
- 30.11.2017Ex-Twitter worker claims responsibility for Trump's account shutdown
- 07.08.2017U.S. can talk to North Korea if it stops missile tests: Tillerson
- 08.08.2017Trump: North Korean threats 'will be met with fire & fury'
- 09.08.2017Venezuela using excessive force, arrests to crush protests: U.N.
- 06.08.2017Trump: "UNSC sanctions to make big financial impact on N. Korea"
- 06.08.2017Washington to continue taking 'Prudent Defensive Measures' against Pyongyang
- 06.08.2017U.S. searching for 3 missing Marines after aircraft mishap off Australia