Oil prices drop 3% as US, Libyan and Norwegian supplies resume

Oil prices closed down about 3 percent after the lifting of force majeure in the largest oil field in Libya, the end of a strike in Norway, and the start of American producers to resume production after Hurricane “Delta”.

Brent crude futures, the world benchmark, ended the trading session on Monday, down $ 1.23, or 2.9 percent, to settle at $ 41.62 a barrel.

U.S. West Texas Intermediate crude futures fell $ 1.17, or 2.9 percent, to close at $ 39.43.

Production in Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), is expected to rise to 355,000 barrels per day after the force majeure situation in the Sharara oil field was lifted on Sunday.

The increase in Libyan production will represent a challenge to the “OPEC +” group and its efforts to curb supplies in order to support crude prices.

Hurricane “Delta” dealt the biggest blow to energy production from the Gulf of Mexico in the United States in 15 years, but workers began to return to production platforms on Sunday, as Total resumed operation of the Port Arthur refinery in Texas, with a capacity of 225 thousand and 500 barrels.

The price of oil contracts for the closest maturity of the two benchmarks recorded gains of more than 9 percent last week, the largest weekly increase for Brent since June.

Both crude oil prices fell on Friday after Norwegian oil companies struck a deal with union officials to end a strike that threatened to halt nearly 25 percent of the country’s oil and gas production.

Prices are also under pressure from a jump in new cases of “Covid-19”, which has raised the specter of more general isolation measures, which may dampen demand for oil.

Source: Reuters

On: Tuesday – October 13, 2020

Oil prices closed down about 3 percent after the lifting of the force majeure in the largest oil field in Libya, the end of a strike in Norway, and the start of US producers to resume production after Hurricane “Delta”.

Brent crude futures, the world benchmark, ended the trading session on Monday, down $ 1.23, or 2.9 percent, to settle at $ 41.62 a barrel.

U.S. West Texas Intermediate crude futures fell $ 1.17, or 2.9 percent, to close at $ 39.43.

Production in Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), is expected to rise to 355,000 barrels per day after the force majeure situation in the Sharara oil field was lifted on Sunday.

The increase in Libyan production will represent a challenge to the “OPEC +” group and its efforts to curb supplies in order to support crude prices.

Hurricane Delta dealt the biggest blow to energy production from the Gulf of Mexico in the United States in 15 years, but workers began to return to production platforms on Sunday, and Total resumed operation of Port Arthur’s 225,500 barrel refinery in Texas.

The price of oil contracts for the closest maturity of the two benchmarks recorded gains of more than 9 percent last week, the largest weekly increase for Brent since June.

Both crude oil prices fell on Friday after Norwegian oil companies struck a deal with union officials to end a strike that threatened to halt nearly 25 percent of the country’s oil and gas production.

Prices are also under pressure from a jump in new cases of “Covid-19”, which has raised the specter of more general isolation measures, which may dampen demand for oil.

Source: Reuters