NEW YORK: Global oil prices fell more than $1 per barrel yesterday despite upbeat economic data from China and Europe, as higher crude output from Iraq and a possible thaw in US-Iran relations boosted the supply outlook.
Oil prices plummeted last week as Lybia’s production recovered to nearly 40 percent of pre-war capacity after protesters agreed to reopen major western fields, and as fears of US-led military action against Syria faded.
“There’s been a lot of progress in Libya and that’s outweighing some of the positive data from China and Europe,” said Joseph Basilico, senior vice president of energy derivatives at Jefferies Bache in New York.
Brent crude for November delivery fell to the day’s low of $107.83 a barrel and was down $1.30 at $107.92 at 11.24am EDT (1524 GMT). US crude for November fell $1.38 to $103.37 a barrel.
Iraq, a key Opec producer, said on Monday it boosted output from its southern oilfields after repairing a leaking pipeline.
More oil is also coming from South Sudan as it raised output to the highest level since it resumed exports through Sudan.
“The return to the market of Libyan and South Sudanese supply is weighing on prices. South Sudan is currently producing 240,000 barrels of crude oil per day, the highest volume since oil production was shut down in January 2012,” Commerzbank senior oil analyst Carsten Fritsch said.
The bearish mood for oil also drew support from the possibility of a groundbreaking meeting between leaders of the United States and Iran on the sidelines of the United Nations gathering this week. Exports from Iran have more than halved in recent years to around 1 million barrels per day in 2012.
Reuters
