Oil prices eased on Tuesday on news that Iran and Libya have continued to increase production, overshadowing an OPEC agreement struck last week to freeze output levels in a bid to stem a two-year price rout.
Benchmark Brent crude oil futures were trading down 32 cents at $50.59 a barrel at 7:05 a.m. ET (1105 GMT). U.S. West Texas Intermediate (WTI) crude was down 37 cents at $48.44 a barrel.
“Today’s losses should come as no surprise as Libyan production is climbing higher and Iranian exports are on the rise too. Add to these that the dollar is strengthening and you have a bearish cocktail,” said Tamas Varga, analyst at PVM Oil Associates in London.
Iran’s crude oil and condensate sales have likely approached levels last seen at peak time in 2011 before western sanctions were imposed, sources with knowledge of the matter said.
Iran, which is allowed to produce “maximum levels that make sense” as part of an output limit agreed by the Organization of the Petroleum Exporting Countries last week, likely sold 2.8 million barrels per day (bpd) of crude and condensate in September, the sources said.
more at: http://www.cnbc.com/2016/10/03/oil-prices-dip-on-surging-iran-sales-but-looming-opec-deal-offers-support.html