Oil claws back some losses as Libyan exports to resume

Oil claws back some losses as Libyan exports to resume

Reuters  | Jul 12, 2018 08:36

Oil claws back some losses as Libyan exports to resume

By Christopher Johnson

LONDON (Reuters) - Oil prices rallied on Thursday, recouping some ground following sharp losses the previous session after Libya said it would resume oil exports.

Benchmark Brent crude oil (LCOc1) rose $1.37, or almost 1.9 percent, to a high of $74.77 a barrel before easing back to trade around $74.50 by 0820 GMT. On Wednesday, Brent had slumped $5.46 or 6.9 percent.

U.S. light crude (CLc1) gained 25 cents to $70.63 a barrel, after falling 5 percent the previous session.

"The market fell out of bed yesterday as support failed (but was)... probably overdone to the downside," said Robin Bieber, technical analyst at London brokerage PVM Oil Associates. "Sharp attempts to recover are to be expected."

An announcement by Libya's National Oil Corp that four oil export terminals were reopening, ending a standoff that had shut down most of Libya's oil output, was a key catalyst for the price fall on Wednesday, analysts said.

The reopening will allow the return of up to 850,000 barrels per day of high quality crude oil to international markets.

An escalating U.S.-China trade row also helped depress oil prices as it raised the prospect of faltering global growth and lower energy consumption, particularly in emerging markets.

Oil had some supportive news late on Wednesday that U.S. crude oil stocks fell by nearly 13 million barrels last week, the most in nearly two years, dropping overall crude stocks to their lowest point since February 2015.

The decline in U.S. inventories was partially due to a fall in stocks at the Cushing, Oklahoma delivery hub for U.S. crude futures, which dropped 2.1 million barrels.

"For WTI (U.S. light crude) there is tightness at Cushing, which will be supportive over July and August," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore.

© Reuters. A pump jack is seen at sunset outside Scheibenhard, near Strasbourg

Supply to the U.S. market has also been squeezed by the loss of some Canadian oil production.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+