Mounting Output from Libya Weighs Down Crude Oil Futures
Crude oil futures prices edged lower on Wednesday, falling for a third session in a row amidst concerns over rising output from Libya which came on the heels of increasing U.S. production.
Brent crude futures lost more than 0.4 percent in Asian trading session compared to their last close to trade around $51.61 per barrel.
As stated by Libya’s state-run National Oil Corporation, the country’s oil production is expected to rise to 800,000 barrels per day (bpd) this week and boost its exports as a result. According to market sources, Libya has already shipped out an average of 500,000 bpd of crude oil so far this year, which is nearly as twice as 300,000 bpd shipped on average in 2016.
Libya’s mounting crude oil output, couple with soaring shale oil production in the U.S., undermined OPEC-led production cuts aimed at wiping out the current crude oil global glut.
Later on Wednesday, the American Petroleum Institute (API) is scheduled to publish its estimates of U.S. crude and refined product inventories. Meanwhile, official data from the Energy Information Administration will be released on Thursday. Both come out one day later than usual due to a holiday on Monday.
Market forecasts a crude oil inventory fall of 2.830 million barrels for the week ending May 26th.
Sell Stop at 51.60, Take profit 51.00, Stop loss at 51.90