Futures were little changed in New York after rising 3.7 percent the previous two sessions. Libya declared force majeure, a legal clause that allows the suspension of deliveries, on supplies from the Sharara field after it was blocked on Sunday, National Oil Corp. Chairman Mustafa Sanalla said. Drillers targeting crude trimmed the rig count by five to 763, the second decline this month, according to data Friday from Baker Hughes Inc. “The fragility of Libya’s production increase” was highlighted by the problem at Sharara, said Giovanni Staunovo, an analyst at UBS Group AG in Zurich. “Considering that the political situation and security issues remain unresolved, production gains can be quickly reversed.” Click Read More below for more of the story.
National Average Price for Regular – Current: $2.852; Month Ago: $2.857; Year Ago: $2.649. National Average Price for Diesel – Current: $3.182; Month Ago: $3.150; Year Ago: $2.717.
West Texas Intermediate for April delivery lost as much as 59 cents to $52.55 a barrel on the New York Mercantile Exchange and was at $52.57 at 12:27 p.m. in London. Total volume traded was about 11 percent below the 100-day average. Brent for May settlement fell as much as 58 cents, or 1 percent, to $55.34 a barrel on the London-based ICE Futures Europe exchange. Prices slid 9 cents to $55.92 a barrel on Tuesday. The global benchmark crude traded at a premium of $2.27 to May WTI. U.S. crude inventories probably rose by 2 million barrels last week, according to the median estimate in a Bloomberg survey before an Energy Information Administration report on Wednesday. click Read More below for additional detail
Brent crude for delivery in June fell 1.4% to $62.60 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, light, sweet crude futures traded at $55.27 a barrel, down $0.47, or 0.8%, from Friday’s settlement. Dollar-priced commodities like oil were hit by the rising dollar on Monday. The Wall Street Journal Dollar Index, which tracks the greenback against a basket of other major currencies, rose 0.3%.