U.S. Oil Holds Near $44 As Libya, Nigeria Seen Adding To Glut | Independent Newspapers Limited
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U.S. Oil Holds Near $44 As Libya, Nigeria Seen Adding To Glut

Oil Prices, SON; Qua Iboe Crude Oil
Posted: Sep 16, 2016 at 6:00 am   /   by   /   comments (0)



U.S. crude held near $44 a barrel amid speculation the global supply glut will expand as OPEC members Libya and Nigeria prepare to boost exports within weeks, reports Bloomberg.

Futures rose as much as 1.1 percent in New York after losing 5.9 percent the previous two sessions. Libya’s state oil company on Wednesday lifted curbs on sales from three ports, potentially unlocking 300,000 barrels a day. Exxon Mobil Corp. was said to be ready to resume shipments of Nigeria’s biggest export grade. U.S. government data showed crude stockpiles fell 559,000 barrels last week, compared with a forecast gain in a Bloomberg survey.

Oil has fluctuated since rallying in August amid speculation the Organisation of Petroleum Exporting Countries and Russia would agree on measures to stabilise the market. The glut will last into 2017, longer than previously thought, as demand growth slows, the International Energy Agency said Tuesday. Rigs targeting crude in the U.S. have had the biggest return to activity since oil began falling two years ago, and Kazakhstan’s giant Kashagan field is expected to start output this year, adding to the oversupply.

“Concerns on oversupply continue to persist,” said Bjarne Schieldrop, chief commodities analyst at bank SEB AB in Oslo. “With a weak outlook from the IEA and the possibility for revived production in Libya and Nigeria, there is no need for more U.S. shale oil rigs back into the market.”

West Texas Intermediate for October delivery was at $43.81 a barrel on the New York Mercantile Exchange, up 23 cents, at 1:42 p.m. in London. The contract fell $1.32 to $43.58 on Wednesday, the lowest close since September 1. Total volume traded was about 9 percent below the 100-day average.

Brent for November settlement was 37 cents higher at $46.22 a barrel on the London-based ICE Futures Europe exchange. The contract dropped $1.25 to $45.85 on Wednesday. The global benchmark was at a premium of $1.83 to WTI for November.