LONDON: Brent crude oil fell towards $107 a barrel yesterday on continued expectation of a rise in Libyan supply, though a larger-than-expected draw of US crude stocks capped losses.
Libya hopes to resume production at one of its largest oilfields, El Sharara in the west of the country, within three days after protesters agreed to suspend their two-month stoppage, officials said on Thursday.
An increase in oil exports from the Opec member, which have dropped to less than 250,000 barrels per day (bpd) from 1.4 million bpd in July, would boost supply and weigh on prices.
By 1631, Brent fell 72 cents to $107.06. This compounded a 2.7 percent drop on Thursday and set the European benchmark on track for its biggest weekly percentage drop in six months.
“The sentiment is still bearish for sure, and I think Libya is still going to be the key driving factor,” said Amrita Sen, chief analyst at consultants Energy Aspects.
US crude fell 83 cents to $94.61 and was on track for a weekly percentage fall of more than five percent, its sharpest since September 2012.
reuters
