Close  

Oil prices drop as Libya moves to boost exports

/ 07:18 AM September 15, 2016
In this file photo taken with a long exposure, a pumping unit sucks oil from the ground near Greensburg, Kan. AP FLE PHOTO

In this file photo taken with a long exposure, a pumping unit sucks oil from the ground near Greensburg, Kansas. AP FILE

NEW YORK, United States — World crude prices sank Wednesday as Libya’s state oil company said it would double production within four weeks after rebels handed it control of the vital Oil Crescent ports.

Also supporting prices was the weekly US oil reserves report, which showed an unexpectedly sharp increase in stockpiled refined products while crude stocks were only slightly lower.

ADVERTISEMENT

US crude benchmark West Texas Intermediate (WTI) for delivery in October fell $1.32 to $43.58 a barrel.

In London, Brent North Sea crude for November delivery lost $1.25 to $45.85 a barrel.

FEATURED STORIES

The fall came after Libya’s National Oil Corporation said it would start working “immediately” to restore exports from the key ports that were seized from the government by rival troops on Sunday and Monday, threatening the country’s financial lifeblood.

On Tuesday the rebels said they would turn the ports over to NOC.

Shortly after that NOC Chairman Mustafa Sanalla said in a statement that it could raise production from the current 290,000 barrels a day to 600,000 barrels “within four weeks.” By the end of the year, he said, NOC could by production 950,000 barrels a day.

That would add a substantial supply of crude to world markets even as the OPEC cartel and Russia are to hold talks this month on capping output.

Sanalla stressed in a statement that meeting those goals depends “on the Oil Crescent ports and the closed pipelines in the southwest being opened and kept open.”

Meanwhile the US Department of Energy reported Wednesday that commercial crude inventories fell about 600,000 barrels in the week to September 9, but that a jump in stored refined products meant the overall petroleum stocks balance jumped by 6.0 million barrels.

“The oil report was not as bullish as the headline number may have suggested, so concerns about oversupply remain firmly in place,” City Index oil analyst Fawad Razaqzada told AFP.

ADVERTISEMENT

“Not only did stocks of gasoline and distillates rise sharply, crude production was up for the first time in four weeks, too.”

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, Libya, oil, oil glut, oil supply
For feedback, complaints, or inquiries, contact us.
globalnation

Pangilinan taunts Duterte’s war threat against Canada

April 24, 2019 09:55 AM

business

BREAK: MWSS fines Manila Water for supply shortage

April 24, 2019 09:50 AM

opinion

Be prepared

April 24, 2019 09:08 AM




© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.