Thursday, 22 December 2016
NEW YORK: Oil futures fell on Wednesday after Libya said it expects to boost production over the next few months and a report showing a surprise build in U.S. crude inventories last week.
Brent futures for February delivery fell 89 cents, or 1.6%, to settle at $54.46 a barrel, while U.S. West Texas Intermediate crude for February lost 81 cents, or 1.5%, to $52.49 per barrel.
Even though WTI futures for February were down, the U.S. front-month gained about 0.5% due to the contract roll from lower-priced January to the higher-priced February on Tuesday and closed at its highest level in over a week.
Libya’s National Oil Corporation (NOC) confirmed on Tuesday that pipelines leading from Sharara and El Feel fields had reopened, saying it hoped to add 270,000 barrels per day (bpd) to national production over the next three months.
On Nov. 30, OPEC agreed to cut output by 1.2 million bpd for six months from Jan. 1, with top exporter Saudi Arabia cutting around 486,000 bpd. On Dec. 10, non-OPEC countries including Russia agreed to reduce output by 558,000 bpd, the largest-ever contribution by non-OPEC producers.
Oil markets are expected to remain well-supplied despite the planned OPEC and non-OPEC reductions.
Russia’s 2016 oil output is expected to total 547.5 million tonnes (11 million barrels per day), a 2.5% increase from last year.
Source by: Internet