Oil supply resumed in Libya and other places, but demand was sluggish, international oil price fell nearly 3% |
[ Time:2020-10-14 | Hits:345 ] |
| International oil prices closed down about 3% under pressure as crude oil production in Libya, Norway and the Gulf of Mexico is about to resume. West Texas Intermediate (WTI) futures for November delivery on the New York Mercantile Exchange fell $1.17, or 2.9%, to $39.43 a barrel, to its lowest level in a week; Brent crude for December delivery on ice London fell $1.13, or 2.6%, to $41.72 a barrel. Reported that the organization of Petroleum Exporting Countries (OPEC) member countries, Libya's largest oil field Sharara oilfield has been lifted force majeure, the oilfield's daily crude oil production may increase to 355000 barrels. As Libya is exempted from production cuts, the rise in its oil production will challenge OPEC and its allies in reducing production in an effort to hold back oil prices. Bob yawger, head of Mizuho energy futures, said there would be a large influx of crude oil from Libya, "and you just don't need these new supplies, which is bad news for the supply side.". Meanwhile, hurricane Delta has been downgraded to a post tropical cyclone over the weekend, the biggest blow to energy production in the Gulf of Mexico in 15 years last week. In addition, oil and gas production has recovered and will soon return to normal after workers from offshore oil fields in the Gulf region of the United States ended their strike on Sunday and returned to production platforms. Since last week, oil prices have risen the most since September. But both benchmark contracts fell on Friday after Norwegian oil company and union officials reached an agreement to end a strike that could reduce oil and gas production by nearly 25%. The strike has reduced North Sea crude oil production by 300000 barrels a day. |