Oil prices rebound in Asia

INQUIRER FILE PHOTO

SINGAPORE – Oil rebounded in Asia Monday on bargain hunting following sharp falls last week stoked by the prospect of a revival in Libyan supplies.

US benchmark West Texas Intermediate for August delivery was up nine cents to $100.92 in mid-morning trade. It declined $2.10 in New York trade Friday.

Brent crude for August advanced 18 cents to $106.84 after falling $2.01 in London trade.

Libya’s interim Prime Minister Abdullah Al-Thani declared earlier this month that authorities had regained control of two export terminals blockaded by rebels demanding autonomy in the country’s eastern region.

The ports at Ras Lanuf and Al-Sidra could add about 500,000 barrels of crude per day to global energy markets, analysts say.

Output in Sharara, the site of Libya’s largest oil field, is reaching its maximum production capacity of 340,000 barrels, just days after it reopened following a deal between rebels and the government.

Investors were also looking out for a slew of economic indicators due to be released this week, starting with inflation data from Europe and US retail sales on Tuesday, said Desmond Chua, an analyst with CMC Markets in Singapore.

China, the world’s second biggest economy, will release GDP and industrial production figures on Wednesday, while Federal Reserve chief Janet Yellen will conclude a testimony before the US Congress on the same day.

Yellen’s remarks as well as upcoming corporate earnings reports in the United States will be monitored for hints on the health of the world’s biggest economy and top oil consuming nation, analysts said.