Oil headed for a weekly loss on speculation a global crude glut will persist as disrupted supply returns and demand growth slows.
Futures fell 1.3 percent in New York, extending a weekly decline to 5.5 percent. OPEC members Libya and Nigeria, whose supplies have been reduced by domestic conflicts, are preparing to boost exports within weeks. The oil surplus will last longer than previously thought as demand growth slumps and output proves resilient, the International Energy Agency said Tuesday.
Oil has fluctuated since rallying in August amid speculation the Organization of Petroleum Exporting Countries and Russia would agree on measures to stabilize the market at a meeting in Algiers later this month. All 14 member countries will attend the Sept. 27 meeting, according to an official with knowledge of the plans.
“Oil prices keep trading in a narrow range,” said Michael Poulsen, an analyst at Global Risk Management Ltd. “A short spike yesterday is erased this morning as supply glut worries rule.”
West Texas Intermediate for October delivery fell 55 cents to $43.36 a barrel on the New York Mercantile Exchange at 9:27 a.m. in London. Prices on Thursday gained 0.8 percent to close at $43.91 a barrel. Total volume traded about 4 percent below the 100-day average.
Libya Ports
Brent for November settlement fell as much as 1.4 percent to $45.94 a barrel on the London-based ICE Futures Europe exchange. Prices advanced 74 cents, or 1.6 percent, to settle at $46.59 on Thursday. The global benchmark traded at a $2 premium to WTI for November delivery.
Libya’s state oil company on Wednesday lifted curbs on crude sales from the ports of Ras Lanuf, Es Sider and Zueitina, potentially unlocking 300,000 barrels a day of supply. In Nigeria, Exxon Mobil Corp. was said to be ready to resume shipments of Qua Iboe crude, while a second grade operated by Royal Dutch Shell Plc is scheduled to restart about 200,000 barrels a day of flow within days.
World oil stockpiles will continue to accumulate through 2017, a fourth consecutive year of oversupply, according to the IEA. Just last month the agency predicted the market would return to equilibrium this year.
Source: www.hellenicshippingnews.com